Which One of the Following Statements Regarding the Gross Profit

question 89

Multiple Choice

Which one of the following statements regarding the gross profit method is not true?

• A)The gross profit method is a complicated method to use in practice.
• B)The gross profit method is often used to estimate the year-end inventory for comparison to actual on-hand inventory.
• C)The gross profit method is an acceptable method to estimate the cost of inventory destroyed by a casualty.
• D)The gross profit method results in a less accurate inventory valuation than the retail inventory method.

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Definitions:

Classes

Categories into which data, objects, or individuals are grouped based on similar characteristics or criteria.

Line Chart

A graphical representation that connects individual data points with lines to show trends over a period of time.

Variable

An attribute or detail that can change or alter.

Time Periods

Specific intervals or periods used for analysis or measurement in temporal data or time series analysis.