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.

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Definitions:

Create (+) Icon

A graphical interface element typically used in software applications to indicate the functionality for adding new items, such as records, files, or directory entries.

Bank Deposit

The act of placing money into a banking institution for safekeeping, which can also refer to the money that has been deposited.

Add New Deposits

The act of recording or entering new sums of money placed into a banking account.

Internal Control

Actions and protocols set up by an organization to safeguard the reliability of its financial and accounting data, foster responsibility, and mitigate fraudulent activities.