Use the Following Information for Questions 114 Through 118

question 86

Multiple Choice

Use the following information for questions 114 through 118.
The following data concerning the retail inventory method are taken from the financial records of Welch Company.
-Assuming that the LIFO inventory method were used in conjunction with the data and that the inventory at retail had increased during the period, then the computation of retail in the cost-to-retail ratio would

• A) exclude both markups and markdowns and include beginning inventory.
• B) include markups and exclude both markdowns and beginning inventory.
• C) include both markups and markdowns and exclude beginning inventory.
• D) exclude markups and include both markdowns and beginning inventory.

---

Definitions:

Cattle Grazing

The practice of allowing livestock, specifically cattle, to feed on grass in open fields or pastures.

Grasslands

Biomes characterized by large open areas of grasses, with very few trees, that can be found in both temperate and tropical regions of the world.

Desert

A barren area of landscape where little precipitation occurs, resulting in harsh living conditions for most plants and animals.

Jet Stream

A fast flowing, narrow air current found in the atmospheres of some planets, including Earth, typically at the altitude of the boundary between the troposphere and the stratosphere.