An Assumption Necessary to the Use of the Gross Profit

question 28

Multiple Choice

An assumption necessary to the use of the Gross Profit method is that the

• A) Gross Profit amount is constant from period to period.
• B) inventory level remains constant.
• C) the rate of Gross Profit is constant from period to period.
• D) the Gross Profit percentage increases at the rate of inflation.

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Definitions:

Uncertainty

A condition of limited knowledge where it is impossible to exactly describe an existing state, future outcomes, or more than one possible outcome.

Unanticipated Ways

Events or outcomes that occur in a manner not previously expected or predicted.

Avoided

The action of deliberately keeping away from or not doing something.

Conflict Management

The practice of identifying and handling conflicts in a sensible, fair, and efficient manner, with the aim of improving learning and group outcomes.