The Law Dictionary

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RETAIL INVENTORY METHOD Definition & Legal Meaning

Definition & Citations:

The estimated value at the end of an inventory procedure that is based on retail price and cost. Includes the following steps: (1) maintaining detailed records of stock and prices, (2) computation of cost to retail percentage, (3) estimation of price of goods remaining against price of goods sold and (4) conversion of the estimation of inventory at a reatil price as compared to the cost price.


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