Casualty Losses

1 Posts
1 Sections
1 Types

August 25, 2024 4 min read Definitions

Gross Profit Method: Estimating Inventory at Interim Periods

Accounting Finance Insurance Inventory Gross Profit Method Interim Reporting Inventory Estimation Casualty Losses

The Gross Profit Method is a system used to estimate inventory at the end of an interim period, which is essential for preparing interim statements. It is particularly useful for estimating inventory lost to calamities for insurance purposes, although it is not acceptable for annual reporting.

Read more about Gross Profit Method: Estimating Inventory at Interim Periods.