The LIFO retail method assumes that markups and markdowns apply only to the goods purchased during the period.

Question

Quizplus · Accepted Answer

The LIFO retail method only tracks the cost and retail value of inventory purchased during the period, and assumes that any markups or markdowns only apply to that specific inventory. This is in contrast to other inventory costing methods, such as FIFO and weighted average, which incorporate all inventory purchases and adjustments.

The LIFO Retail Method Assumes That Markups and Markdowns Apply