alleryStart learning →The gross profit method estimates cost of goods sold by doing what?
AAdding opening stock to closing stock
BMultiplying purchases by a tax rate
CDeducting estimated gross profit from sales
DCounting units on the shelf by hand
Answer & Solution
Correct answer: C. Deducting estimated gross profit from sales
Estimated gross profit, from last year's margin applied to sales, is subtracted from sales to estimate cost of goods sold.
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