Which one of the following statements regarding the gross profit method is true?
A) The gross profit method is a complicated method to use in practice.
B) The gross profit method results in a more accurate inventory valuation than the retail inventory method.
C) The gross profit method is an acceptable method to estimate the cost of inventory destroyed by a casualty.
D) The gross profit method is often used to calculate the year-end inventory for financial accounting purposes.
C
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a. brand b. minimally augmented product c. core product d. augmented product
The ________ approach to valuing a business uses the price-earnings ratios of similar businesses to establish the value of a company
A) balance sheet B) capitalized earnings C) discounted future earnings D) market