Which of the following is an advantage of using the retail method of inventory valuation versus the cost method?

Which of the following is an advantage of using the retail method of inventory valuation versus the cost method?


a. Physical inventories using retail prices are subject to more error

b. Inventories need to be taken in order to prepare the accounting statements

c. Physical inventories take long periods of time to complete

d. It provides an automatic, conservative valuation of ending inventory

e. Heavy reliance on bookkeeping activities


Answer: D


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