The Gross Profit Method of Estimating Inventory Would Not Be

question 41

Multiple Choice

The gross profit method of estimating inventory would not be useful when

• A) a periodic system is in use and inventories are required for interim statements.
• B) inventories have been destroyed or lost by fire, theft, or other casualty, and the specific data required for inventory valuation are not available.
• C) there is a significant change in the mix of products being sold.
• D) the relationship between gross profit and sales remains stable over time.

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Definitions:

Infarction

The blockage of blood flow to a specific organ or area of tissue, leading to the local demise of that tissue.

Severe Headache

A type of pain in the head that is intense and often debilitating.

Stroke

A medical condition where poor blood flow to the brain results in cell death, leading to possible paralysis, speech difficulties, and other health issues.

Heart Disease

A range of conditions that affect your heart, such as coronary artery disease, heart infections, and congenital heart defects.