Tepper04-4

Tepper04-4 - Unit IV The Retail Method of Inventory Part IV...

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Unit IV The Retail Method of Inventory
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Part IV An Evaluation of the Retail Method of Inventory
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Part IV. An Evaluation of the Retail Method of Inventory A. THE ADVANTAGES OF THE RETAIL METHOD OF INVENTORY It permits control over profit because the figures for markup obtained and markdowns taken frequently are available Immediate action can be taken to protect the desired profit margin It simplifies the physical inventory process because the physical inventory is taken at retail prices, which is less difficult and less expensive All entries are made rapidly and no decoding is necessary, the personnel use does not require special training or experience
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Part IV. An Evaluation of the Retail Method of Inventory The benefits of the retail method of inventory: It provides a book inventory and, therefore, discrepancies (i.e., shortages and/or overages) in stock can be determined, shortage causes may be discovered, and preventive/corrective measures can be taken It provides an equitable basis for insurance and adjustment claims.
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Part IV. An Evaluation of the Retail
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This note was uploaded on 02/14/2012 for the course HUEC 3043 taught by Professor Freeman during the Fall '10 term at LSU.

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Tepper04-4 - Unit IV The Retail Method of Inventory Part IV...

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