When a new product is not being sold at the rate originally forecasted,the retailer may reduce the price in order to reduce the inventory of the product.This reduction is known as a
A) markdown.
B) rebate.
C) coupon.
D) cash discount.
E) quantity discount.

Question

Quizplus · Accepted Answer

A markdown is a reduction in price applied to a product in order to stimulate sales and reduce inventory levels. In this scenario, the product is not selling as expected and the retailer wants to get rid of excess inventory, so they reduce the price to attract customers and sell more units. Rebates, coupons, cash discounts, and quantity discounts are all different types of promotions or discounts offered to customers, but they are not necessarily related to reducing inventory levels.

When a New Product Is Not Being Sold at the Rate