Question

The retail method has been used by a retail department store during its first year of operations. how will markdowns compare to markdown cancellations at the end of the year?

Answer 1

Markdowns are the discounts that the retail department give from the original sales price and markdowns cancellation refers to getting the price back to its original state after the markdown. The markdown cancellations will be most likely to be equal to or less than the markdowns because there is no way that markdown cancellations will be bigger in amount than the markdown.