Match the following terms with the appropriate definition.
-A method for estimating inventory based on the ratio of the amount of goods for sale at cost to the amount of goods for sale at retail prices.
A)Gross profit method
B)Inventory turnover
C)Conservatism principle
D)Consistency concept
E)Consignor
F)Consignee
G)Days' sales in inventory
H)Retail inventory method
I)Specific identification method
J)Lower of cost or market

Question

Quizplus · Accepted Answer

The Retail Inventory Method estimates inventory value by maintaining a ratio of the cost of goods to their retail price, adjusting for sales and markdowns.

Match the Following Terms with the Appropriate Definition