I don't feel confident about my answer. can you help explain which is the correct answer and WHY

Assessment 1: The gross margin method... The gross margin method of estimating ending inventory is frequently used Multiple Choice to avoid having to take a physical count of the inventory on hand, to check the accuracy of a physical count of inventory on hand O to determine the balance of the inventory shown on the balance sheet to determine the amount of cost of goods available for sale shown on the statement of cash flows