16. The retail method is based on the assumption that A. Ratio of cost to retail changes at a constant rate B. Ratio of gross margin to sales is approximately the same each period C. Proportion of markup and markdown to selling price are the same D. Final inventory and the total of goods available for sale contain the same proportion of high cost and low cost ratio goods

17. Which of the following is not included in the cost of inventories of a service provider? A. Labor and other costs of personnel directly engaged in providing the service B. Labor and other costs relating to general administrative personnel C. None; all of these costs are included D. Overhead attributable to the rendering of services

18. Which of the following is not included in the cost of inventories of a service provider? A. Labor and other costs relating to general administrative personnel B. Overhead attributable to the rendering of services C. Labor and other costs of personnel directly engaged in providing the service D. None; all of these costs are included

19. Which of the following statements best describes investment property? A. Property held for sale in the ordinary course of business B. Property held to earn rentals or for capital appreciation C. Property held for use in the production and supply of goods or services and property held for administrative purposes D. Property held for capital appreciation

20. Technical or commercial obsolescence arises from A. Improvement in production or change in market demand for the output of the asset B. Expected usage of the asset C. Expiry date of related lease of the asset D. Expected physical wear and tear