16. In the retail inventory method, the term markup means a markup on the original cost of an inventory item.
17. In the retail inventory method, abnormal shortages are deducted from both the cost and retail amounts and reported as a loss.
18. The inventory turnover ratio is computed by dividing the cost of goods sold by the ending inventory on hand.
19. The average days to sell inventory represents the average number of days’ sales for which a company has inventory on hand.
* 20. The LIFO retail method assumes that markups and markdowns apply only to the goods purchased during the period.
True False Answers— Conceptual