The Gross Margin Estimation Method Estimates the Cost of Goods

question 65

Multiple Choice

The gross margin estimation method estimates the cost of goods sold by

• A) multiplying the sales revenue by cost-to-sales ratio.
• B) multiplying the cost of goods available by the gross margin percentage.
• C) multiplying the costs to sales ratio by purchases.
• D) multiplying the sales revenue by the inventory turnover ratio.

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