Included in the computation of the cost-to-retail percentage for the LIFO retail method are:
A)Net markups and net markdowns.
B)Neither net markups nor net markdowns.
C)Net markups, but not net markdowns.
D)Net markdowns, but not net markups.

Question

Quizplus · Accepted Answer

The LIFO retail method considers both net markups and net markdowns in its computation of the cost-to-retail percentage. Net markups increase the cost of goods sold, while net markdowns decrease it. Therefore, both elements are included in the overall calculation to arrive at an accurate cost-to-retail percentage.

Included in the Computation of the Cost-To-Retail Percentage for the LIFO