The Retail Inventory Method (RIM) of accounting offers the unique opportunity to devalue inventory by recognizing the cost of markdowns to provide more accurate forecasting, accountability, and lower taxes. However, since it applies a cost to markdowns and sales based on a Cumulative Markup of all inventory in the same class and store, it has […]
Discounts and Markdowns: The Good, the Bad, and the Ugly
This article is reprinted with permission from Linda Carter with The Retail Management Advisors, and a long time friend and consultant to Smyth Retail and many of our clients. This is a great explanation of the difference between markdowns and discounts. Generally, customers choose to shop a particular store based on the store’s reputation (brand), […]
