Because of markdowns,discounts to employees and customers,and merchandise reductions,the:
A) maintained markup is always less than the gross margin
B) initial markup is always higher than the maintained margin
C) sell-through analysis is necessary to determine the appropriateness of a location site
D) value of average inventory at cost is less than its value at retail
E) initial markup is always lower than maintained markup

Question

Quizplus · Accepted Answer

Initial markup is higher due to normal reductions in the value of inventory. To maintain the chosen markup, a higher markup is set on merchandise when it first goes on the market. Prices are lowered as time passes.

Because of Markdowns,discounts to Employees and Customers,and Merchandise Reductions,the