How Is the Gross Profit Method Used as It Relates

question 29

Multiple Choice

How is the gross profit method used as it relates to inventory valuation?

• A) Verify the accuracy of the perpetual inventory records.
• B) Verify the accuracy of the physical inventory.
• C) To estimate cost of goods sold.
• D) To provide an inventory value of LIFO inventories.

---

Definitions:

Reward Power

is a form of influence where an individual has control over the distribution of rewards, motivating others to follow directions or achieve goals.

Referent Power

The influence one has over others because they respect, admire, or like the individual.

Organizational Learning

The process by which organizations acquire, improve, and manage knowledge to better adapt and succeed.

Institutionalizing

The process of embedding practices, norms, and values within an organization to make them stable and enduring.