Retailers generally think of their inventory at retail price levels rather than at cost. Retailers use their initial markups, additional markups, and markdowns, and so forth as percentages of retail. When retailers compare their prices to competitors', they use retail prices. The problem is that when retailers to design their financial plans, evaluate performance, and prepare financial statements, they need to know the cost value of their inventory. Retailers use physical inventories. This process is time consuming and costly. Retailers take physical inventories once or twice a year.

BOM inventory Forecast monthly sales + Basic stock

The percentage variation gives the same results as basic method when the annual inventory turnover of 6 is planned. When higher inventory turnovers are planned, the percentage variation has the same shortcomings as the basic stock method.

$23,334 = $8,334 + $15,000

Some common words found in the essay are:
RIM Calculate, Inventory-Level Planning, Variation Method, book inventory, basic stock, stock sales, retail inventory, stock sales ratio, total handled, inventory retail, value inventory, sales ratio, Inventory Method, stock method, cost retail, basic stock method, retail inventory method, Retail Management, book inventory retail, Bibliography Appendix, total handled cost, Management Appendix, Sales Ratio, Resources Retailing, Retail Inventory,
Approximate Word count = 1490
Approximate Pages = 6 (250 words per page double spaced)