An inventory method which is designed to approximate inventory valuation at the lower of cost or net realizable value is
A) last-in, first-out.
B) first-in, first-out.
C) conventional retail method.
D) specific identification.

Question

Quizplus · Accepted Answer

The conventional retail method is specifically designed to approximate inventory valuation at the lower of cost or net realizable value. This method calculates the cost of goods sold and ending inventory by applying a cost-to-retail percentage to the total cost and retail value of goods available for sale.

An Inventory Method Which Is Designed to Approximate Inventory Valuation