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Retail Inventory Method
An accounting method used by retailers to estimate inventory cost by calculating a cost-to-retail ratio.
FOB Destination
FOB Destination is a shipping term indicating the seller bears the shipping costs and maintains ownership until the goods reach the buyer's location.
Periodic Inventory System
An inventory accounting system where the inventory balance is updated at specific intervals, rather than continuously.
Retained Earnings
The portion of net income that is not distributed to shareholders but is kept by the company to be reinvested in its core business or to pay debt.
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