d . The total amount of purchases and the total amount of sales remain relatively unchanged from the comparable previous period .
48 . The gross profit method of inventory valuation is invalid when
a . a portion of the inventory is destroyed .
b . there is a substantial increase in inventory during the year .
c . there is no beginning inventory because it is the first year of operation .
d . none of these .
49 . Which statement is not true about the gross profit method of inventory valuation ?
a . It may be used to estimate inventories for interim statements .
b . It may be used to estimate inventories for annual statements .