In using the LIFO retail method, the current period cost-to-retail percentage includes both net markdowns and net markups.

Question

Quizplus · Accepted Answer

The LIFO retail method includes both net markdowns and net markups in the cost-to-retail percentage calculation. This is because the method assumes that the most recently purchased items are sold first, and therefore, any changes in the selling price (whether due to markdowns or markups) affect the cost of the items sold in that period.

In Using the LIFO Retail Method, the Current Period Cost-To-Retail