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Question(s) / Instruction(s):

When calculating the cost ratio for the retail inventory method,                                                               

A.            the beginning inventory is included and markdowns are deducted.                                                         

B.            the beginning inventory is excluded and markdowns are deducted.                                                       

C.            the beginning inventory is included and markdowns are not deducted.                                                 

D.            the beginning inventory is excluded and markdowns are not deducted.

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