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Advantages and disadvantages the retail inventory method?
It is cost effective and simple for companies to implement since it reduces the number of physical inventory counts. It is also accepted as a method of determining cost of goods sold for income tax purposes by the IRS.
Is the Retail Inventory Method accurate?
It is as accurate as any inventory method. It is much easier to take inventory at retail if you are on the floor counting the items because they are priced at retail. When you reconcile the number of units on hand vs the number purchased, you will know how many you sold or are not accounted for in the sales records. The term for those missing items is "shrinkage" and is a factor in GMROI. Theft of merchandise, mark downs and paperwork errors contribute to shrinkage....one important reason to take inventory. The problem with cost inventories (from my view) is that discounts, volume pricing and other variances to the cost of like items makes it hard for the inventory taker to determine which one was purchased at one cost, and which one at another. If the merchandise tags are coded and inventoried using those codes, the cost can be applied post inventory. A complete and accurate count, no matter how you do it, is what matters.
What does the letters rgis stand for in rgis inventory service?
Retail and Grocery Inventory Service
Inventory carrying cost and cost of not having it?
Inventory carrying cost is that cost which is incurred by company to stock the inventory while cost for not having inventory means that cost which company has to bear due to non availability of inventory like loss of sales or good sales opportunity loss cost etc.
What methods do not require a physical inventory periodic inventory system perpetual inventory method retail method or gross profit method?
periodic inventory system
Is inventory reported at cost or retail for balance sheet reporting?
Inventory is recorded at the lower of cost or market value.
The records of Alaina Co provide the following information for the year ended December 31 Jan 1 begin bal at cost 81670 at retail 114610 cost og goods at cost 492250 at retail 751730 sales at retail?
The cost-to-retail ratio for beginning inventory is 0.711, calculated by dividing the beginning cost of $81,670 by the beginning retail of $114,610. Cost of goods sold is $492,250 and sales are $751,730 at retail, so you can estimate cost of goods sold as $349,953 (0.466 x $751,730).
What is the annual inventory turnover in the retail painting industry?
The annual inventory turnover in the retail painting industry is obtained by dividing the Annual Cost of Sales by the Average Inventory Level. A low inventory turnover ratio is a signal of inefficiency.
Advantages and disadvantages the retail inventory method?
It is cost effective and simple for companies to implement since it reduces the number of physical inventory counts. It is also accepted as a method of determining cost of goods sold for income tax purposes by the IRS.
Is the Retail Inventory Method accurate?
It is as accurate as any inventory method. It is much easier to take inventory at retail if you are on the floor counting the items because they are priced at retail. When you reconcile the number of units on hand vs the number purchased, you will know how many you sold or are not accounted for in the sales records. The term for those missing items is "shrinkage" and is a factor in GMROI. Theft of merchandise, mark downs and paperwork errors contribute to shrinkage....one important reason to take inventory. The problem with cost inventories (from my view) is that discounts, volume pricing and other variances to the cost of like items makes it hard for the inventory taker to determine which one was purchased at one cost, and which one at another. If the merchandise tags are coded and inventoried using those codes, the cost can be applied post inventory. A complete and accurate count, no matter how you do it, is what matters.
What does the letters rgis stand for in rgis inventory service?
Retail and Grocery Inventory Service
What is retail security?
It is the security of the inventory that is been kept in store and warehouse. Usually big companies insure their inventory as a security. Small retail shop keepers hire a security guard for protecting the inventory.
Inventory carrying cost and cost of not having it?
Inventory carrying cost is that cost which is incurred by company to stock the inventory while cost for not having inventory means that cost which company has to bear due to non availability of inventory like loss of sales or good sales opportunity loss cost etc.
Are there stores that sell Retail Store Supply inventory?
yes there stores that sell Retail Store Supply inventory. basically theier goal is to sell the items
If the cost of an item of inventory is 60 the current replacement cost is 65 and the selling price is 95 the amount included in inventory according to the lower of cost or market concept is?
Inventory is generally carried on the balance sheet at its historical cost to the firm. This represents the most accurate value since it was an amount actually paid by the firm, not an estimate. If the market value changes upwards, the balance sheet value is not changed since accounting principles generally favor the more conservative (lower) value. If however the market value of inventory decreases (through obsolescence for example), then the inventory value is adjusted downward to accurately reflect this and ensure the value is not materially overstated on the firm's balance sheet. The retail price is never used for inventory valuation. The retail price will be used only for the income statement. So, using your example, the amount included in inventory would be 60.
What methods do not require a physical inventory periodic inventory system perpetual inventory method retail method or gross profit method?
periodic inventory system
What is the difference between cost accounting and cost management?
For retail companies, computing cost of goods sold is a fairly straight forward process. Beginning inventory + purchases - ending inventory = COGS. For manufacturing firms, however, that simple formula won't work. They have to compute how much something cost to build, which can be extremely complicated. Hence, cost accounting evolved for manufacturing companies.
