If you sell merchandise or manufacture goods, you measure your gross profits by your sales revenues less the cost of goods sold, or COGS. The equation for COGS is beginning inventory plus purchases ...

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.

Discover essential methods for calculating business costs and their tax implications. Learn how accountants and producers ...

The number of times a business sells and replaces its stock over a given time period is its inventory turnover ratio. The inventory turnover ratio, also sometimes called stock turns or inventory turns ...

Inventory Turnover Ratio plays a pivotal role in understanding how efficiently a company manages its inventory. It measures the frequency at which a company sells and replaces its inventory within a ...