Two financial ratios that clearly distinguish a discount chain such as Walmart from ahigh-end retailer such as Gucci are the gross profit percentage and the rate of inventory turnover. Which set of relationships is most likely for Gucci?Gross profit percentage Inventory turnovera. Low Highb. High Lowc. High Highd. Low Low

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.