The gross profit method may be used to estimate the cost of inventory.
Required:
a.List four situations when it might be appropriate to use the gross profit method to estimate the cost of inventory.
b.Discuss the potential disadvantages of the gross profit method.

Question

The gross profit method may be used to estimate the cost of inventory.
Required: 
a.List four situations when it might be appropriate to use the gross profit method to estimate the cost of inventory.
b.Discuss the potential disadvantages of the gross profit method.

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The Answer of The gross profit method may be used to estimate the cost of inventory.
Required: 
a.List four situations when it might be appropriate to use the gross profit method to estimate the cost of inventory.
b.Discuss the potential disadvantages of the gross profit method.

The Gross Profit Method May Be Used to Estimate the Cost