Question: When estimating the cost of inventory using the retail method (retail) under the rule of the lesser of cost and market (conventional retail inventory method)

When estimating the cost of inventory using the retail method (retail) under the rule of the lesser of cost and market (conventional retail inventory method)

Select one:

a. markdowns are excluded when computing the cost rate (C/R) ratio.

b. markups and markdowns are included when computing the cost ratio (C/R ratio).

c. "Markups" and "markdowns" are excluded when computing the cost rate. (C/R ratio)

d. markups are excluded when computing the cost ratio (C/R ratio).

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