A Way to Estimate the Cost of Ending Merchandise Inventory

question 41

True/False

A way to estimate the cost of ending merchandise inventory on the basis of the ratio of the goods available for sale at cost to the goods available for sale at retail is called the gross profit method.

---

Definitions:

Cooperative Factories

Manufacturing establishments run by a collective group of workers who share the profits and management responsibilities.

Seventeenth Amendment

An amendment to the U.S. Constitution, ratified in 1913, that established the direct election of U.S. senators by popular vote, replacing their previous selection by state legislatures.

Direct Election

A system of choosing political officials where voters directly cast ballots for the persons or party candidates they desire to see in office, without the intervention of electors or intermediaries.

State Legislatures

State legislatures are the lawmaking bodies within each of the fifty states in the United States, responsible for creating state laws, determining state budgets, and serving as a check on the executive power of the state governor.