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:

Scapegoating

The practice of unfairly blaming an individual or group for problems or negative outcomes, often to deflect attention or responsibility from the true causes.

Prejudice

A preconceived opinion or judgment about an individual or group without sufficient knowledge, factual basis, or experience, often leading to discrimination.

Stereotypes

Oversimplified generalizations about a group of people that often lead to prejudiced attitudes and discrimination.

Secondary Labour Market

Part of the job market consisting of low-paying jobs with poor working conditions, limited job security, and few prospects for advancement.