The Alpha Company uses the retail inventory method for valuation of its inventory. If an item had a cost of $45, was originally marked to sell at $60, was later priced at $55, and finally was priced at $68, the resulting price change is a

Question

Quizplus · Accepted Answer

The final price of $68 compared to the original price of $60 results in a net markup of $8. The intermediate markdown to $55 and markup back to $68 cancel each other out, resulting in no net markdown.

The Alpha Company Uses the Retail Inventory Method for Valuation