All of the following statements about standard markup pricing are true except which?
A) High-volume products usually have smaller markups than do low-volume products.
B) The percentage markup depends on the type of retail store and the product involved.
C) Markups must cover all expenses of the store, pay for overhead costs, and contribute something to profits.
D) The method involves summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price.
E) Supermarket managers use this method since they have such a large number of products that estimating the demand for each product as a means of setting price is impossible.

Question

Quizplus · Accepted Answer

Standard markup pricing involves adding a specific amount to the total unit cost of providing a product or service to arrive at a price. A, B, and C are all true statements about standard markup pricing. However, E is false because supermarket managers typically use demand-based pricing instead of standard markup pricing, as they have the data and tools to estimate demand for each product.

All of the Following Statements About Standard Markup Pricing Are