Under the dollar-value LIFO the cost-to-retail ratio includes net markups and net markdowns from both the current period and beginning inventory. during the current period.

Question

Quizplus · Accepted Answer

Under the dollar-value LIFO method, the cost-to-retail ratio includes net markups but excludes net markdowns. Markdowns are not considered in the calculation because they do not reflect the current cost of purchasing inventory.

Under the Dollar-Value LIFO the Cost-To-Retail Ratio Includes Net Markups