BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A markdown is the amount deducted from the selling price of goods to arrive at the cost and is usually expressed as a percentage of the selling price.

Detailed explanation-2: -A markdown is an amount by which you decrease the selling price. The amount that you decrease the price by can be expressed as a percent of the selling price, known as the markdown rate.

Detailed explanation-3: -Markdown is the reduction of a product’s selling price. Markdown is applied to a product to reduce its price, while markup is applied to increase the price. Markup and markdown are used by retailers to adjust prices according to the market conditions and to maximize profit margins.

Detailed explanation-4: -Markup prices can be defined as the increase (by percentage) in the price of a product based on its original cost. Markdown prices are the rate (markdown percentage) decrease in the selling price of a product from its original selling price. The term discount is a more common term to describe markdown prices.

Detailed explanation-5: -Sales, discounts, clearance, price reductions: these are all examples of retail markdowns. Shoppers love markdowns because they make them feel like they’re getting a good deal. Retailers benefit from markdowns because they help liquidate inventory.