A major advantage to the retail method of accounting is the _____.

Question

Quizplus · Accepted Answer

The retail method of accounting makes it easy to prepare a profit-and-loss statement on the basis of book inventory figures, which is a major advantage. This method also simplifies bookkeeping by using the retail value of inventory, rather than tracking each item's individual cost and sale price. However, it may not provide the most accurate cost of goods sold figure, as it relies on assumptions and estimated markups. Taking a physical inventory is still necessary to ensure the accuracy of the book inventory figures.

A Major Advantage to the Retail Method of Accounting Is