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The retail inventory method estimates the cost of ending inventory by applying the gross profit ratio to net sales.
a. True
b. False

Respuesta :

The retail inventory method estimates the cost of ending inventory by applying the gross profit ratio to net sales. 
The Real Inventory Method (RIM) helps estimate the cost of inventory. They are able to estimate this based on cost to produce and sale price of the product. This percentage is then added to the ending of inventory pricing. 
marvineetesh3

The given statement is true, that the retail inventory technique calculates the cost of ending inventory by dividing net sales by the gross profit ratio

How does the retail inventory method calculates the value of ending inventory?

The retail inventory technique figure out the closing or ending inventory value by adding the value of all goods addressable for sale by considering opening or initial inventory and any new inventory purchases. Total sales for the time are deducted from products on the market.

The Retail Inventory Method is a method of approximating the worth of a store's inventory over time. It succeeds by first computing the entire retail value of all the products in the inventory, then deducting the total quantity of sales and computing the result by the cost-to-retail ratio.

Learn more about the retail inventory method, refer to:

https://brainly.com/question/17051820

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