Which of the following statements is a limitation of the rule-based approach to taking markdowns?
A) The rule-based approach is based upon gross margin.
B) The approach prohibits input from the vendor.
C) The approach does not follow a fixed schedule.
D) It does not consider the demand for merchandise at different price points.
E) The approach assumes that items in a category do not exhibit the same behavior.

Question

Quizplus · Accepted Answer

The rule-based approach does not consider the demand for the merchandise at different price points or in different locations and thus produces less-than-optimal profits.

Which of the Following Statements Is a Limitation of the Rule-Based