Regarding markdowns, which of the following statements is TRUE?
A) The markdown ratio is calculated by dividing the sum of markdowns and allowances by net sales.
B) Markdowns are required because customers will not buy at the original marked-up price.
C) Markdowns are generally considered to be due to "business errors."
D) All of these alternatives for markdowns are TRUE.

Question

Quizplus · Accepted Answer

Markdown ratio is computed by dividing the sum of markdowns and allowances by net sales; markdown is a retail price reduction required because customers won't buy some item at the originally marked-up price; markdowns are generally considered to be due to business errors.

Regarding Markdowns, Which of the Following Statements Is TRUE