SPHDC: Discounting for Stock Clearance

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Abstract

Describes a controversy between the marketing manager, who instructs his department to dispose of the accumulated stock of sarees at a price discount of 15%, and the financial advisor, who asserts that the discount would result in a huge loss to the corporation. The controversy provides an opportunity for discussing the method of evaluating the economics of a price discount decision, the tradeoff between loss from discounting and the cost of carrying inventory.

Additional Information

Product Type Case
Reference No. F&A0321
Title SPHDC: Discounting for Stock Clearance
Pages 4
Published on Jan 1, 1979
Year of Event 1978
Authors Balakrishnan, K;
Area Finance and Accounting (F&A)
Discipline Accounting, Economics, Marketing
Sector Manufacturing
Country India

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