To determine the value of ending inventory and, ultimately, margins, many retailers have stuck with an accounting practice known as the retail inventory method — in some cases for more than 100 ...

Cost accounting is a more conservative inventory valuation method that values inventory based on its cost. Retail accounting, on the other hand, values inventory based on items' retail price.

Companies have used the retail method of inventory accounting for many years. According to the Committee on Ways and Means, the retail inventory method has been the best accounting method since 1941.

Learn about the methods of calculating and tracking inventory that are used in retail accounting.

The Internal Revenue Service has issued new rules for changing a method of accounting for retail inventory.

As Home Depot, Target and Walmart prepare to report earnings, retail inventory method accounting could change how tariffs affect their profitability.

Accounting Standards Update No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory applies to all inventory except that which is measured using last-in, first-out (LIFO) or the ...

Learn what inventory accounting is, how it works, and key methods like FIFO, LIFO, and WAC. Includes real-world examples, tips, and best practices.