To use the retail method to estimate inventory,you need to know the goods available for sale at retail.

Question

Quizplus · Accepted Answer

This statement is true. The retail method relies on knowing the total value of goods available for sale at retail prices, as well as the cost-to-retail ratio for those goods. This allows for an estimate of the cost of ending inventory based on the current selling price of the remaining goods.

To Use the Retail Method to Estimate Inventory,you Need to Know