Which of the following statements is NOT true of markdowns?
A) Markdowns are part of the cost of doing business,and thus buyers plan for them.
B) A buyer's objective is to minimize markdowns.
C) Retailers have a set of arbitrary rules for taking markdowns.
D) Buyers employ markdowns to promote merchandise and increase sales.
E) Markdowns can increase customer traffic flow.

Question

Quizplus · Accepted Answer

A buyer's objective isn't to minimize markdown,but rather to manage the markdowns.If markdowns are too low,the buyer is probably pricing the merchandise too low,not purchasing enough merchandise,or not taking enough risks with the merchandise being purchased.

Which of the Following Statements Is NOT True of Markdowns