The cost-to-retail percentage used in the retail method to approximate average costs considers both markdowns and markups.

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The cost-to-retail percentage used in the retail method takes into account both markdowns and markups, in order to approximate the average cost of goods sold. This is a key feature of the retail method, which is commonly used in the retail industry for inventory valuation purposes.

The Cost-To-Retail Percentage Used in the Retail Method to Approximate