The Method of Estimating Inventory That Uses Records of the Selling

question 181

Multiple Choice

The method of estimating inventory that uses records of the selling prices of the merchandise is called

• A) retail method
• B) gross profit method
• C) inventory turnover method
• D) average cost method

---

Definitions:

Graph

A visual representation of data designed to show the relationship between two or more variables.

Short-Run Economic Profit

The profit earned by a firm in the short term, potentially including both actual financial gains and opportunity costs.

Average Total Cost

The total cost of production divided by the quantity of output produced; a measure of per-unit cost.

Price

The amount of money required to purchase a good or service, determined by various factors including supply and demand.