A Business Uses the Retail Inventory Method to Estimate the Value

question 59

Multiple Choice

A business uses the retail inventory method to estimate the value of the ending inventory.For the month of May,the cost of goods available for sale is $15,625 at cost and $21,550 at retail.The cost ratio is:

• A)72.5%.
• B)27.5%.
• C)37.9%.
• D)None of these are correct.

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Definitions:

Correlation

A numerical value indicating how much two variables vary in conjunction with each other.

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A classification system used in education to evaluate or rank students' performance, typically represented by letters (A, B, C, etc.) or numbers.

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A unit of time equal to 60 minutes or 3600 seconds.