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S_A_V
1 month ago
15

The gross profit method of inventory valuation is not valid when a. there is substantial increase in the quantity of inventory d

uring the year. b. there is substantial increase in the cost of inventory during the year. c. the gross margin percentage changes significantly during the year. d. all ending inventory is destroyed by fire before it can be counted.
Business
1 answer:
stepan [3.5K]1 month ago
6 0
The gross profit method of inventory valuation is invalid under the circumstance where the gross margin percentage experiences significant changes throughout the year.
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