Which One of the Following Statements Is Not True Concerning

question 98

Multiple Choice

Which one of the following statements is not true concerning the retail inventory method?

• A)Net markups and markdowns are always added and subtracted in order to compute the retail value of ending inventory.
• B)Markups and markdowns are recorded only at retail.
• C)In the lower of average cost or market method, net markups are excluded from the computation of the cost-to-retail ratio.
• D)In computing the cost-to-retail ratio, purchase discounts affect only the cost of purchases and not the retail amount of purchases.

---

Definitions:

Manufacturing

The process of producing goods on a large scale using labor, machines, tools, and chemical or biological processing or formulation.

Impeachment

A formal process in which officials can be accused of unlawful activity, potentially leading to their removal from office upon conviction.

Resignation

Resignation refers to the act of giving up or stepping down from a position of authority or office, typically in a formal manner.