Which One of the Following Statements Is Not True with Regard

question 41

Multiple Choice

Which one of the following statements is not true with regard to the gross profit method of estimating inventories?

• A)The gross profit method may be used to determine inventory for interim financial reporting purposes without taking a physical count.
• B)The percentage used for the gross profit method is determined by using previous years' historical data.
• C)The gross profit method is not as accurate as the retail inventory method.
• D)The gross profit method may only be used with a perpetual inventory accounting system.

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Definitions:

Functional Manager

A manager responsible for a specific business function or department within an organization, such as marketing, finance, or production.

Divisional Departmentalization

Organizational structure where operations are divided into semi-autonomous units based on product, service, or market.

Technological Advancement

The progress or development in technology, leading to new inventions, improvements, and the creation of novel products or processes.

Organizational Change

The process by which organizations transform their structures, strategies, policies, processes, or culture to adapt to internal and external pressures.