EXAM 3 ACCT 301-003
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Which inventory costing method assumes that items sold are those that were acquired first?
FIFO
Rudy Company reports gross sales revenue of $5.2 million, net sales revenue of $5 million, and cost of goods sold of $3 million. Rounding to the nearest percent, the company's gross profit ratio would be
GPR = GP/NET SALES (5-3)/5=40%
Assuming that prices rise over time, which inventory cost flow assumption will result in the lowest pretax income?
LIFO
