A major advantage of a late markdown policy is that _____.
A)lower markdowns are required
B)selling space is freed for new merchandise
C)the retailer has an opportunity to sell more merchandise at the original price
D)a retailer's cash flow position is improved

Question

Quizplus · Accepted Answer

Late markdown policy allows the retailer to sell more merchandise at the original price, which helps improve their profit margin as well as inventory turnover. By holding off on markdowns, the retailer gives the merchandise more time to sell at the original price, which results in increased revenue and reduced costs.

A Major Advantage of a Late Markdown Policy Is That