Which of the following companies would be most likely to use the retail method?
A)An auto dealer
B)A computer service company
C)A clothing store
D)A restaurant supply company

Question

Quizplus · Accepted Answer

The retail method is a method of valuing inventory where the cost of goods sold is based on the retail price of the items instead of their actual cost. This method is commonly used by retail stores, such as clothing stores, to calculate the cost of goods sold and the value of ending inventory. Therefore, a clothing store (option C) is most likely to use the retail method.

Which of the Following Companies Would Be Most Likely to Use