The gross profit method of estimating inventory enables managers to prepare budgets and pro-forma (forecast or anticipated)financial statements.

Name: The gross profit method of estimating inventory enables managers to prepare budgets and pro-forma (forecast or anticipated)financial statements.
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Question

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The gross profit method can be used to estimate the cost of goods sold and, consequently, the value of inventory. This information can be helpful in preparing budgets and financial statements.

The Gross Profit Method of Estimating Inventory Enables Managers to Prepare