With regard to the retail inventory method, which of the following statements is the most accurate?
A. Generally , accountants ignore net markups and net markdowns in computing the cost-price percentage
B. Generally, accountants exclude both net marups and net markdowns in computing cost-price percentage
C. This method results in a lower ending inventory cost if net markups are included but net markdowns are excluded in computing the cost-price percentage
D. It is not adoptable to FIFO existing
Answer: C. This method results in a lower ending inventory cost if net markups are included but net markdowns are excluded in computing the cost-price percentage.
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