The Gross Profit Method of Estimating Inventory Would NOT Be

question 35

Multiple Choice

The gross profit method of estimating inventory would NOT be useful when

• A) a periodic system is in use and inventories are required for interim statements.
• B) there is a significant change in the mix of products being sold.
• C) inventories have been destroyed or lost by fire,theft,or other casualty,and the specific data required for inventory valuation are not available.
• D) the relationship between gross profit and sales remains stable over time.

---

Definitions:

Miles

Units of distance measuring 5,280 feet, or approximately 1.609 kilometers, commonly used in the United States.

Dimensional-analysis

A mathematical technique used to convert one set of units to another, facilitating computations and solving problems.

Centimeters

A unit of length in the metric system, equivalent to one hundredth of a meter.

Inches

A unit of length in the imperial and US customary systems, equivalent to 1/12th of a foot.