Which Statement Is NOT True About the Gross Profit Method

question 166

Multiple Choice

Which statement is NOT true about the gross profit method of inventory valuation?

• A) It may be used to estimate inventories for interim statements.
• B) It may be used to estimate inventories for annual statements.
• C) It may be used by auditors.
• D) It may be used to provide a rough check on the accuracy of the physical inventory count.

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Definitions:

Alienation

The feeling of being isolated and disconnected from one’s work, society, or sense of self.

Vertical Loading

A management concept involving the process of delegating more responsibilities and higher-level tasks to employees to increase their involvement and motivation.

Performance Accountability

Involves holding employees or organizations responsible for achieving performance objectives and standards.

Performance Feedback

The process of providing constructive information and evaluations to employees about their work performance.