Comparative sales method.

• Jurisdiction: United States
• Author: Heitritter, Wilfred H.
• Date: 01 April 1999

According to Rev. Proc. 77-12, the comparative sales method values finished goods at their actual or expected selling prices, less the costs of disposition and a profit commensurate with the investment amount, the time required to sell the inventory and the degree of risk. If inventory quantities exceed normal trading volumes, expected selling prices are a valid starting point under this method, but only if the inventory is used to fill customer orders in the ordinary course of business.

In Jack Daniel Distillery, 379 F2d 569 (1967), the Court of Claims...