When the conventional retail inventory method is used, markdowns are ignored in the computation of the cost to retail ratio because
A. There may be no markdowns in a given year
B. This tends to give a better approximation of the lower of cost and net realizable value
C. Markups are also ignored
D. This tends to result in the showing of the normal profit margin in the period when no markdown goods have been sold
Answer: B. This tends to give a better approximation of the lower of cost and net realizable value
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