CERTYNEX IFRS ACADEMY

Comptoirs Sauvelin, a chain of convenience stores, is considering measuring its inventories using the retail method. Which statements are correct?

It determines cost by adding a standard gross margin to the purchase price.

It is widely used by retailers holding many fast-moving items with comparable margins.

It may be used even if its results differ significantly from cost, since the standard mentions it expressly.

The gross margin percentage applied takes into account items marked down below their original selling price.

An average percentage for each retail department is often used.