Retail Vs Cost in MFP

Hi,

I need to educate my client whether they should use Cost or Retail in MFP.

I have explained on the basis of below details:

Retail Method	Cost Method
Values physical inventory based on Current Ticked Retail Price	Values physical inventory based upon what the retailers actually paid for item
Acknowledges a margin degradation only when a promotional item sales.	Calculate a reduction in margin immediately when price of item reduced.
Approximate cost of goods sold using an estimated on hand (cumulative) markup	Calculate accurate “Cost of goods Sold” from actualized and weighted receipt and on hand.
Requires