When the Conventional Retail Inventory Method Is Used, Markdowns Are

Multiple Choice

When the conventional retail inventory method is used, markdowns are commonly ignored in the calculation 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 market.
C) markups are also ignored.
D) this tends to result in showing a normal profit margin in a period when no markdown goods have been sold.