Under the conventional retail method, the denominator in the cost-to-retail percentage includes:
A) Net markups and net markdowns.
B) Neither net markups nor net markdowns.
C) Net markups, but not net markdowns.
D) Net markdowns, but not net markups.

Question

Quizplus · Accepted Answer

Under the conventional retail method, the cost-to-retail percentage is calculated by including net markups in the denominator but excluding net markdowns. This approach helps in approximating the lower of cost or market value.

Under the Conventional Retail Method, the Denominator in the Cost-To-Retail