Which one of the following statements is false concerning the retail inventory method?

a. Net markups and markdowns are always added and subtracted in order to compute the retail value of ending inventory.

b. Markups and markdowns are recorded only at retail.

c. In the lower of average cost or market method, net markups are excluded from the computation of the cost-to-retail ratio.

d. In computing the cost-to-retail ratio, purchase discounts affect only the cost of purchases and not the retail amount of purchases.