All of the following statements about standard markup pricing are true except
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)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 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

The statement in option D is incorrect, as standard markup pricing does not involve summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price. Instead, it involves adding a certain percentage to the cost of the product to arrive at the selling price. The other statements are true.

All of the Following Statements About Standard Markup Pricing Are