Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 9 - Inventories: Additional Valuation Issues - Concepts for Analysis - Page 540: CA9-7(14)

Answer

Employee discounts (sales recorded net) would not be considered in the cost to retail under both conventional method or LIFO method.

Work Step by Step

Employee discounts refers to a situation where the employees of e.g. a retail store are given a certain percentage off for the items they buy from the store.
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