The Markdown Percentage of an Item with an Original Retail

question 35

Multiple Choice

The markdown percentage of an item with an original retail of $50 and the new retail of $12.50 is:

• A)25%
• B)40%
• C)60%
• D)75%

---

Definitions:

Cost Control

The practice of managing and reducing business expenses through efficient operations and spending.

Weighted-Average Method

Inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all materials purchased during a period.

Work in Process

Work in process refers to materials and components that are part of a manufacturing process but have not yet been completed as finished goods.

Weighted-Average Cost Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units purchased during the period.