Answer :

terrin11
The retail inventory method is an accounting method used to estimate the value of a store's merchandise. The retail method provides the ending inventory balance for a store by measuring the cost of inventory relative to the price of the merchandise. Along with sales and inventory for a period, the retail inventory method uses the cost-to-retail ratio.

Inventory corresponds to all of the items, commodities, commerce, and materials held by a company for the purpose of reselling in the marketplace for revenue.

What is the retail Inventory method?

The Retail Inventory Method is a technique for estimating the worth of a store's inventory across time. It works by first calculating the entire retail value of all the commodities in your inventory, then removing the total number of sales and multiplying that total by the cost-to-retail ratio.

Retail companies typically utilize the retail inventory method (RIM) for inventory accounting and performance reporting. Under generally accepted accounting principles, RIM has long been regarded as an appropriate inventory technique.

Thus Retail Inventory Method is correct.

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