The Range Is Generally Not a Good Way to Assess

question 23

Multiple Choice

The range is generally not a good way to assess variability because ______.

• A) it is too robust
• B) it is easily influenced by outliers
• C) it does not measure variability
• D) it is difficult to calculate

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Definitions:

Cost-to-Retail Ratio

A method used in inventory accounting that calculates the cost of goods available for sale as a percentage of the retail price of the goods.

Net Markdowns

Net markdowns represent the reduction in the selling price of goods or products, often reflecting changes in market demand or stock clearance needs, net of any markdown cancellations.

Ending Inventory's Valuation

The process of assigning value to the inventory that is still on hand at the end of an accounting period.

Retail Inventory Method

An accounting method used by retailers to estimate their inventory's ending value by using a cost to retail price ratio.