A markdown is the reduction of an item's selling price to encourage sales.

• A. True
• B. Sometimes
• C. Always
• D. Never

Answer: (A)

Markdowns are intentional price reductions used to boost sales. A markdown is the reduction of an item's selling price to encourage sales. This captures the purpose and action: lowering the price to entice buyers and move inventory, especially when stock is slow-moving or seasonal demand is low. The statement is true because it aligns with how retailers use price cuts as a promotional tactic. Saying it’s sometimes would imply inconsistency in what a markdown is, which isn’t accurate; saying it’s always would suggest every item is discounted, which isn’t how markdowns work; never would contradict the standard practice of lowering prices to stimulate purchases.