In the retail inventory method of inventory valuation,the retail amount of inventory is measured using selling prices of inventory items.

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Quizplus · Accepted Answer

This is correct. The retail inventory method calculates the cost of the inventory by valuing it at its selling prices, rather than its purchase prices. This method is commonly used in retail businesses where the selling prices of items are known and can easily be tracked.

In the Retail Inventory Method of Inventory Valuation,the Retail Amount