Which Statement Is Not Correct About the Retail Inventory Method

question 142

Multiple Choice

Which statement is not correct about the retail inventory method?

• A)It is an alternative to using a cost flow assumption.
• B)It is acceptable for annual financial reporting in Canada.
• C)It should only be used if reliable information is available about profit margins.
• D)It is a method that estimates ending inventory by applying an average sales margin.

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