When the Conventional Retail Inventory Method Is Used, Markdowns Are

question 466

Multiple Choice

When the conventional retail inventory method is used, markdowns are commonly ignored in the calculation 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 and market.
• C)mark-ups are also ignored.
• D)this tends to result in showing a normal profit margin in a period when no markdown
• Goods have been sold.

Identify the key factors in choosing the appropriate business form based on management, liability, and fiscal considerations.

Analyze real-world business scenarios to apply theoretical knowledge of business law principles.

Understand and use the concept of Consumer Price Index (CPI) and its calculation.

Analyze and calculate ratios and proportions in various contexts.

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Unreasonably Dangerous Product

In product liability, a product that is defective to the point of threatening a consumer’s health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dangerous alternative was economically feasible for the manufacturer, but the manufacturer failed to produce it.

Tort Action

A lawsuit brought to obtain a private civil remedy for harm caused by wrongful conduct.