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    Fundamental Accounting Principles Study Set 1
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    Exam 6: Inventories and Cost of Sales
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    The Reasoning Behind the Retail Inventory Method Is That If
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The Reasoning Behind the Retail Inventory Method Is That If

Question 174

Question 174

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The reasoning behind the retail inventory method is that if we can get a good estimate of the cost-to-retail ratio, we can multiply ending inventory at retail by this ratio to estimate ending inventory at cost.

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