Which of the following statements is a limitation of the rule-based approach to taking markdowns?

A. It does not consider the demand for merchandise at different price points.
B. The rule-based approach is based upon gross margin.
C. The approach assumes that items in a category do not exhibit the same behavior.
D. The approach does not follow a fixed schedule.
E. The approach prohibits input from the vendor.


Answer: A

Business

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