Which of the following best describes a markdown?

A markdown refers to a permanent reduction in the selling price of a product or service. This definition highlights that once a markdown is applied, the new lower price becomes the standard retail price for that item moving forward, rather than just a temporary measure. Retailers may implement markdowns to increase sales on slow-moving inventory, respond to changes in market demand, or clear out seasonal items.

In contrast, a temporary promotion involves a short-term price reduction or special offer that is intended to drive immediate sales but is not intended to change the item's regular selling price. An increase in price does not align with the concept of a markdown, which inherently involves lowering the price. Lastly, a discount applied at the point of sale is typically a temporary reduction applied during a specific transaction rather than a permanent change to the product's price. Thus, the concept of a markdown accurately captures the essence of lasting price changes in a retail context.