Which Statement Best Explains the Retail Inventory Method

question 113

Multiple Choice

Which statement best explains the retail inventory method?

• A)A method for estimating cost of goods sold by applying an average gross margin to the amount of sales recorded in a period.
• B)A method that assigns costs to inventories and cost of sales based on actual costs of each item.
• C)A method of estimating the cost of ending inventory by applying an average sales margin to the retail price of products.
• D)This method is least appropriate for inventory items that are not distinguishable from one another.

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Definitions:

Switch Statement

A switch statement is a control flow statement that allows a variable to be tested against a list of values, each with its own code block to execute.

Syntax Error

A mistake in the code that causes the program to fail to compile or run correctly.

Sentinel Value

A specific value in the context of algorithm or program which is used to indicate the end of data input or processing.

If-else Statement

A conditional statement in programming that executes one block of code if its condition is true, and another block if the condition is false.