In verifying a claim for a loss of inventory,an insurance company might use the gross profit method.

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The gross profit method is a commonly used approach for verifying a claim for a loss of inventory by estimating the amount of inventory lost based on the gross profit percentage. This method takes into consideration the sales revenue, cost of goods sold, and gross profit margin to estimate the amount of inventory lost in case of a covered loss. Therefore, the statement is true, and an insurance company might use the gross profit method to verify a claim for a loss of inventory.

In Verifying a Claim for a Loss of Inventory,an Insurance