The Use of the Gross Profit Method Assumes

question 43

Multiple Choice

The use of the gross profit method assumes

• A) The amount of gross profit is the same as in prior years
• B) Sales and cost of goods sold have not changed from previous years
• C) Inventory values have not increased from previous years
• D) The relationship between selling price and cost of goods sold is similar to prior years

---

Definitions:

Alignment

The arrangement or adjustment of elements in a straight line or correct positions, ensuring consistency and coordination towards shared goals.

Relationships

The connections and interactions between individuals or entities, which may be personal, professional, or commercial in nature.

Collaboration

Working together among individuals or groups to achieve a common goal or solve a problem.