Direct product profitability allows retailers to take into account differences in the costs of installation,delivery,customer service,and merchandise handling in setting markups for categories of merchandise.

Question

Quizplus · Accepted Answer

Direct product profitability (DPP) is a method used by retailers to calculate the profitability of individual products or categories by taking into account all of the costs associated with selling them, including installation, delivery, customer service, and merchandise handling. By considering these costs, retailers can set more accurate markups for different categories of merchandise and make better decisions about pricing and product mix. Therefore, the statement is true.

Direct Product Profitability Allows Retailers to Take into Account Differences