Determine the Cost Ratio That Should Be Used in Estimating

question 38

Multiple Choice

Determine the cost ratio that should be used in estimating the May 31 inventory using the retail method.

• A) 63.8%.
• B) 69.4%
• C) 66.0%.
• D) 68.4%.

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Definitions:

Capital Account

An account on a country's balance of payments that records transactions involving the acquisition or disposal of assets and liabilities.

Income Distribution

The manner in which total income is spread amongst the shareholders, partners, or other stakeholders in a company or economy.

Net Income

The total profit of a company after all revenues, expenses, taxes, and dividends have been deducted.

Personal Use

Usage of an item or service solely for an individual’s needs and not for business or professional scenarios, emphasizing the non-commercial aspect.