When the Conventional Retail Inventory Method Is Used, Markdowns Are

question 3

Multiple Choice

When the conventional retail inventory method is used, markdowns are commonly ignored in the computation of the cost to retail ratio because

• A) there may be no markdowns in a given year.
• B) this tends to give a better approximation of the lower of cost or net realizable value.
• C) markups are also ignored.
• D) this tends to result in the showing of a normal profit margin in a period when no markdown goods have been sold.

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Definitions:

Algae

A diverse group of aquatic organisms capable of photosynthesis, often considered the base of many aquatic food webs.

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Essential minerals and compounds that plants require for growth and development, including nitrogen, phosphorus, and potassium.

Thermal Pollution

The degradation of water quality by processes that change its temperature, often due to the disposal of heated industrial water or natural water bodies.

Thermal Shock

The stress induced in a material due to a rapid change in temperature.