What Is a Benefit of Markdowns for a Department Store

question 72

Multiple Choice

What is a benefit of markdowns for a department store?

• A) It is a way to make room for new merchandise.
• B) It increases customers' traffic.
• C) Markdowns generate cash flow to pay for new merchandise.
• D) It rids the store of obsolete merchandise.
• E) All of these.

Discuss the evolution of consumer behavior analysis from buyer behavior to a more comprehensive approach.

Apply demographic trends and segmentation for creating targeted marketing opportunities.

Understand the concept of market segmentation and its variables.

Grasp the limitations of marketers in creating consumer needs.

---

Definitions:

Single Plantwide Overhead Rate

A cost allocation method that applies the same overhead rate to all products, regardless of the department where they were produced or the amount of overhead they actually incurred.

Machine Hours

A metric used to allocate manufacturing overhead costs to individual products based on the number of hours the machines are run to produce them.

Fabrication Department

A division or unit within a manufacturing firm dedicated to the assembly or production of goods, where raw materials are transformed into finished products.

Multiple Department Rate System

An accounting system used to allocate indirect costs to individual departments based on varying rates, reflecting the different resource usage in each department.