Retail Inventory Method Definition

Below please find a definition of “Retail Inventory Method”

Financial Analysis Training & Glossary TermsRetail Inventory Method: Retail inventory method is an accounting method that is used to estimating the approximate value of a store’s merchandise. The value is approximate since most likely some items are always shoplifted or broken or misplaced in majority of the stores. In order for the estimate to be as accurate as possible, physical inventory is essential on several occasions.

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