ACC 304 All Assignments ACC 304 All Assignments | Page 126

b. first-in, first-out.
c. conventional retail method.
d. specific identification.
52.
The retail inventory method is based on the assumption that the
a. final inventory and the total of goods available for sale contain the
same proportion of high-cost and low-cost ratio goods.
b. ratio of gross margin to sales is approximately the same each
period.
c. ratio of cost to retail changes at a constant rate.
d. proportions of markups and markdowns to selling price are the
same.
53.
Which statement is true about the retail inventory method?