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a. It may be used to estimate inventories for interim statements.
b. It may be used to estimate inventories for annual statements.
c. It may be used by auditors.
d. None of these.
50.
A major advantage of the retail inventory method is that it
a. provides reliable results in cases where the distribution of items in
the inventory is different from that of items sold during the period.
b. hides costs from competitors and customers.
c. gives a more accurate statement of inventory costs than other
methods.
d. provides a method for inventory control and facilitates
determination of the periodic inventory for certain types of
companies.
51. An inventory method which is designed to approximate
inventory valuation at the lower of cost or market is
a. last-in, first-out.
b. first-in, first-out.
c. conventional retail method.
d. specific identification.
52.
the
The retail inventory method is based on the assumption that