Question

Under the retail method, in determining the cost-to-retail percentage for the current year: Multiple Choice Net markups are included. Net markdowns are excluded. Beginning inventory is excluded. All of these answer choices are correct.

Answer 1

Answer: Net markups are included.

Explanation:

The retail inventory method is used to know a store's merchandise value.

Under the retail method, in determining the cost-to-retail percentage for the current year, net markups are included.

It should be noted that the net markups are applicable to net costs.