cost vs retail method of accounting
The cost method of investment accounting. The cost method of accounting is by far the most common approach for reporting investment gains and losses. That's true for retail investors and institutional investors alike. With this method, the actual cost of the investment is used as the baseline, with the profit or loss determined by the final sales price of the stock. For example, you buy a stock at $10, sell it at $15, netting a $5 profit.
Retail Inventory Method. The retail inventory method is an accounting system to estimate the ending inventory and cost of goods sold. Essentially, its used to estimate the amount of ending inventory at cost.