Retail Inventory Method of Accounting

Definition

Retail inventory method of accounting is a type of accounting system whereby the closing inventory at cost is determined by the average relationship between cost and retail value of all goods available for sale during the period.[1]

See also

• Additional markup
• Gross additional markup
• Gross cost of merchandise handled
• Gross cost of merchandise sold
• Initial markup
• Maintained markup
• Markup
• Retailing the invoice
• Total cost of goods sold

 

References

1. ^ American Marketing Association, AMA Dictionary.