When Calculating the Cost Ratio for the Retail Inventory Method

question 149

Multiple Choice

When calculating the cost ratio for the retail inventory method,

• A) if it is the conventional method, the beginning inventory is included and markdowns are deducted.
• B) if it is the LIFO method, the beginning inventory is excluded and markdowns are deducted.
• C) if it is the LIFO method, the beginning inventory is included and markdowns are not deducted.
• D) if it is the conventional method, the beginning inventory is excluded and markdowns are not deducted.

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