Huge,IncOwns an East Coast Grocery Chain

question 43

Multiple Choice

Huge,Inc.owns an East coast grocery chain.It has recently acquired a West coast grocery chain.This is an example of a:

• A) product extension merger.
• B) horizontal merger.
• C) market extension merger.
• D) vertical merger.

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Definitions:

Gross Profit Method

A technique to estimate the inventory's value by deducting the cost of goods sold from the total sales revenue.

Estimated Ending Inventory

An approximation of the value or quantity of inventory that a company has on hand at the end of an accounting period, calculated for planning or valuation purposes.

Gross Profit Rate

The percentage of revenue that exceeds the cost of goods sold, indicating how efficiently a company uses its resources to produce goods.

Ending Inventory

The overall worth of items ready for sale at the end of a fiscal period.