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:

Financial Management

The practice of planning, organizing, controlling, and monitoring financial resources with a view to achieve organizational goals and objectives.

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Practical experience gained through direct involvement in a task or activity, often as opposed to theoretical knowledge.

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Chances to meet and interact with other people in one’s industry or field of interest, often for the purpose of professional advancement.