a company has a lot of inventory and wants to get a sense of how much it has without having to count. it…

a company has a lot of inventory and wants to get a sense of how much it has without having to count. it should choose the ____ method.\na. fifo\nb. gross profit\nc. weighted average\nd. lifo

a company has a lot of inventory and wants to get a sense of how much it has without having to count. it should choose the ____ method.\na. fifo\nb. gross profit\nc. weighted average\nd. lifo

Answer

Answer:

B. gross profit

Brief Explanations:

The gross profit method estimates inventory. It uses the relationship between cost of goods sold, gross profit, and sales. FIFO (first - in - first - out), weighted average, and LIFO (last - in - first - out) are cost - flow assumptions for physically counting and valuing inventory. The gross profit method is used for estimation without a full count.