Under the retail method, in determining the cost-to-retail percentage for the current year:
A) Net markups are included.
B) Net markdowns are excluded.
C) Net sales are included.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

The cost-to-retail percentage is determined by dividing the cost of goods available for sale by the retail value of goods available for sale. Net markups (increases in the selling price of goods) are included in the retail value, while net markdowns (decreases in the selling price of goods) are excluded. Net sales are not used in determining the cost-to-retail percentage. Therefore, only choice A is correct.

Under the Retail Method, in Determining the Cost-To-Retail Percentage for the Current