What Is a Limitation of the Rules-Based Approach for Taking

question 86

Multiple Choice

What is a limitation of the rules-based approach for taking markdowns?

• A) The approach prohibits input from the vendor
• B) The approach does not follow a fixed schedule
• C) The approach assumes that items in a category do not exhibit the same behaviour
• D) The rules-based approach is based upon gross margin
• E) Its only goal is to clear inventory

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Definitions:

Scarcity

Refers to the basic economic problem of having seemingly unlimited human wants in a world of limited resources.

Economics

The social science that studies the production, distribution, and consumption of goods and services.

Physical Capital

Assets owned by a business that are tangible and can be used in the production process, such as machinery, buildings, and equipment.

Microsoft Stock

Equity shares representing ownership in Microsoft Corporation, a major technology company.