The retail inventory method that estimates the lower-of-cost-or-market of ending inventory is the ________.
A) basic retail inventory method
B) gross profit inventory method
C) LCM extract method
D) conventional retail inventory method

Question

Quizplus · Accepted Answer

The conventional retail inventory method estimates the lower-of-cost-or-market by applying a cost-to-retail percentage to the ending inventory at retail prices, considering markdowns to approximate the market value.

The Retail Inventory Method That Estimates the Lower-Of-Cost-Or-Market of Ending