Question: 37 With regard to the retail inventory method, which of the following is the most accounts statement? A. Generally, accountants ignore net markups and net markdowns in computing the cost-price percentage. B. Generally, accountants include both net markups and net markdowns in computing the cost-price percentage. C. This method results in a lower ending inventory cost if net markups are included but net markdowns are excluded in computing the cost- price percentage. D. It is not adaptable to LIFO costing.
Question: 37 With regard to the retail inventory method, which of the following is the most accounts statement? A. Generally, accountants ignore net markups and net markdowns in computing the cost-price percentage. B. Generally, accountants include both net markups and net markdowns in computing the cost-price percentage. C. This method results in a lower ending inventory cost if net markups are included but net markdowns are excluded in computing the cost- price percentage. D. It is not adaptable to LIFO costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question: 37
With regard to the retail inventory method, which of the following is the
most accounts statement?
A. Generally, accountants ignore net markups and net markdowns in
computing the cost-price percentage.
B. Generally, accountants include both net markups and net
markdowns in computing the cost-price percentage.
C. This method results in a lower ending inventory cost if net markups
are included but net markdowns are excluded in computing the cost-
price percentage.
D. It is not adaptable to LIFO costing.
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