Under the Retail Method, the Amount of Ending Merchandise Inventory

question 108

Multiple Choice

Under the retail method, the amount of ending merchandise inventory is estimated by using the ratio of the:

• A)goods available for sale at retail to the goods available for sale at higher of cost or market.
• B)goods available for sale at cost to the beginning merchandise inventory.
• C)beginning merchandise inventory to the goods available for sale at retail.
• D)goods available for sale at cost to the goods available for sale at retail.

Interpret shifts and movements along demand and supply curves.

Understand the impact of price changes on the quantity demanded and supplied.

Analyze the effect of external factors such as poor growing seasons on market conditions.

Recognize the role of substitutes and complements in affecting demand.