A Markdown Refers to

question 212

Multiple Choice

A markdown refers to

• A) the difference between the final selling price and the retailer's cost.
• B) the amount the manufacturer adds to achieve the desired suggested retail price.
• C) discounting a product when it does not sell at the original price and an adjustment is necessary.
• D) the lowest price to which a retailer can reduce a sales ticket and still make a profit.
• E) the net margin.

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Definitions:

Factors

Factors are elements or conditions that are influential in determining outcomes.

Target Markets

Specific groups of potential consumers at whom a company aims its products or services, identified by demographic, geographic, and psychographic characteristics, or by purchasing behavior.

Compensating Balances

Minimum balance requirements mandated by banks for borrowers, serving as a form of security for the loan.

Effective Cost

Effective Cost is the total cost of a product or service once all relevant factors, including hidden costs and indirect expenses, are considered.