Which of the following statements on markdowns is False?
A) Markdowns are an unnecessary part of business if planned correctly.
B) Markdowns are an opportunity to increase sales.
C) Promotional markdowns increase customer flow.
D) If markdowns are too low, the buyer may be not purchasing enough merchandise.
E) If markdowns are too low, the buyer may be pricing their merchandise too low.

Question

Quizplus · Accepted Answer

Markdowns are part of the cost of doing business, and thus buyers plan for them. They tend to order more fashion merchandise than they forecast actually selling because they are more concerned about underordering and stocking out of a popular item before the end of the season than about overordering and having to discount excess merchandise at the end of the season.

Which of the Following Statements on Markdowns Is False