The gross profit method and retail inventory method C Are both estimates of ending inventory and cost of goods sold C Both use the lower of cost or fair market value of inventory in the calculations C Both use the present value of future cash flows C Have nothing in common. One is to determine profit and the other is to determine retail selling price

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A: Step 1The correct option is C. Replacement cost". The lower of price or market (LCM) technique is…

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