A Business Uses the Retail Inventory Method to Estimate the Value

question 97

Multiple Choice

A business uses the retail inventory method to estimate the value of the ending inventory. For the month of June, the cost of goods available for sale is $15,900 at cost and $22,100 at retail. The cost ratio is:

• A) 71.9%.
• B) 28.05%.
• C) 39%.
• D) None of these is correct.

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Definitions:

Mass Consumption

The widespread purchasing and use of products and services by a large number of people.

Hip-hop

A cultural movement that originated in the 1970s in the Bronx, New York, encompassing music, dance, art, and fashion.

Institutional Authority

Refers to the power and influence possessed by organizations within structured and established institutions, such as governments, religious bodies, or educational entities, that enable them to enforce norms and rules.

Deferential

Showing respectful submission or yielding to the judgment, opinion, or will of another person.