The Gross Margin Estimation Method Estimates the Cost of Goods

question 37

Multiple Choice

The gross margin estimation method estimates the cost of goods sold by

• A)multiplying the sales revenue by cost-to-sales ratio.
• B)multiplying the cost of goods available by the gross margin percentage.
• C)multiplying the costs to sales ratio by purchases.
• D)multiplying the sales revenue by the inventory turnover ratio.

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Definitions:

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