A Major Advantage of the Retail Inventory Method Is That

question 5

Multiple Choice

A major advantage of the retail inventory method is that it

• A) provides reliable results in cases where the distribution of items in the inventory is different from that of items sold during the period.
• B) hides costs from competitors and customers.
• C) gives a more accurate statement of inventory costs than other methods.
• D) provides a method for inventory control and facilitates determination of the periodic inventory for certain types of companies.