Which Statement Is Correct

question 107

Multiple Choice

Which statement is correct?

• A)The retail inventory method estimates ending inventory cost using wholesale prices and an average gross margin.
• B)The retail inventory method estimates cost of goods sold using the inventory cost flow equation.
• C)The gross margin method estimates ending inventory cost using retail prices and an average gross margin.
• D)The gross margin method estimates cost of goods sold using the inventory cost flow equation.

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Definitions:

Pay Period

The span of time over which an employee's work hours are recorded and paid.

Class Average

The mean score of a group of students in a particular class or subject.

Business Mathematics

The study of mathematical methods and tools used in business and finance to analyze and solve problems.

Four-figure Accuracy

Refers to precision up to four significant digits.