The Cost Ratio in the Retail Method Is Found by the Cost

question 34

Multiple Choice

The cost ratio in the retail method is found by the cost of goods available for sale at cost divided by:

• A)Net sales
• B)Ending inventory at retail
• C)Cost of goods available for sale at retail
• D)Net purchases at cost
• E)None of these

---

Definitions:

Category Hierarchies

A system of organizing entities or concepts into groups and subgroups based on common characteristics or relationships, allowing for structured classification.

Algorithm

A systematic method or set of instructions used to resolve an issue or accomplish an objective.

Tabasco Sauce

A brand of hot sauce made from tabasco peppers, vinegar, and salt, known for its spicy flavor.

Grocery Store

A retail store that specializes in selling food and other household goods.