When Setting Prices for Merchandise, Retailers Must Decide on the Markup

question 114

Multiple Choice

When setting prices for merchandise, retailers must decide on the markup, the markdown, and the ________ for markdowns.

• A) relevance
• B) necessity
• C) percentage
• D) timing
• E) consequence

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Definitions:

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, according to the rules of double-entry accounting.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.

Credit

An arrangement whereby goods, services, or money is received in exchange for a promise to pay back a definite sum of money at a future date.

Supplies

Items used in the operations of a business, often consumable, such as office supplies or factory supplies, not directly part of the finished product.