Which of the following is not a reason the retail inventory method is used widely?
A) As a control measure in determining inventory shortages
B) For insurance information
C) To permit the computation of net income without a physical count of inventory
D) To defer income tax liability

Question

Quizplus · Accepted Answer

The retail inventory method is not used to defer income tax liability. Instead, it is primarily used for control, insurance, and financial reporting purposes.

Which of the Following Is Not a Reason the Retail