Use the Figure Below to Answer the Following Question

question 162

Multiple Choice

Use the figure below to answer the following question. Figure 1A.3.7
-The slope of the line in Figure 1A.3.7 is

• A)1.
• B)-1.
• C)1/2.
• D)2.
• E)dependent on where you measure it.

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Definitions:

Retail Method

An inventory valuation method used in the retail industry, estimating inventory cost by applying a cost to retail price ratio.

Estimated Cost

An approximation of the cost to produce a product, start a project, or execute a plan, often used in budgeting and planning.

Gross Profit Method

An accounting technique used to estimate inventory levels and cost of goods sold, calculated as sales minus the cost of goods sold.

Estimated Gross Profit Rate

A projected figure that calculates the percentage of gross profit to sales, used for analyzing a company's financial health.