Final answer:
Markdowns are due to a combination of factors including management error, buyer error, and inclement weather. These cause overstock of items or disruption in sales, necessitating markdowns to clear inventory. The correct answer is b. all of these reasons.
Step-by-step explanation:
Markdowns in retail settings can be attributed to several factors. Notably, markdowns are due to management error, buyer error, inclement weather, and other unforeseen circumstances that affect the sales and inventory of products. Among the choices provided:
- Management error refers to decisions by managers that may not align with market demand or inventory management best practices, leading to an overstock of items that need to be marked down to sell.
- Buyer error involves purchasing decisions by the retailer's buying team that result in an excess of certain products that do not sell as projected, necessitating markdowns to clear inventory.
- Inclement weather can disrupt shopping patterns or damage inventory, sometimes resulting in the need for markdowns.
In this context, 'all of these reasons' can be the correct answer as markdowns are due to a combination of these factors.