Question: The retail inventory method is based on the assumption that the ratio of cost to retail changes at a constant rate. final inventory and the

The retail inventory method is based on the assumption that the

ratio of cost to retail changes at a constant rate.

final inventory and the total of goods available for sale contain the same mix of goods with similar gross profits. proportions of markups and markdowns to selling price are the same.

ratio of gross margin to sales is approximately the same each period.

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