Final answer:
A dealer can be shown reports like an inventory valuation summary, a cost analysis report, and a profit and loss statement to see book value vs cost. These reports also provide insights on market value, costs, and profitability.
Step-by-step explanation:
A dealer who wants to compare book value versus cost on their inventory can be shown several reports. These could include an inventory valuation summary, a cost analysis report, and a profit and loss statement. Such reports would provide the dealer with insights about the current market value of his inventory, the total cost associated with acquiring this inventory, and the profitability based on the cost versus the expected selling price. In addition, a dealer should be aware that although prices may vary based on the reputation of the seller and potential undisclosed issues, a higher price at a reputable dealer typically reflects efforts made to ensure vehicle reliability, which can lead to good word-of-mouth and longer-term profits, as opposed to selling lower-priced cars with potential undisclosed issues that can damage the dealer's reputation and customer trust.