Markdowns:
A) do not affect the profits of a business.
B) are not shown on an operating statement.
C) are similar to allowances--and are subtracted from gross sales on an operating statement.
D) are generally caused by "consumer errors."
E) All of these alternatives are correct.

Question

Quizplus · Accepted Answer

Markdown ratios are not shown on an operating statement because they are not directly related to the operating statement. They require special calculations.