Which of the Following Statements Is True of the Gross

question 147

Multiple Choice

Which of the following statements is true of the gross margin method of estimating the dollar amount of ending inventory?

• A) It is helpful in estimating inventory when a fire burns the warehouse
• B) It uses the current gross margin percentage in its calculation
• C) It is a method of estimating ending inventory that can be used only in retail firms
• D) All of these statements are true

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