A major disadvantage of markup pricing is that standard markups are easy to apply.

Question

Quizplus · Accepted Answer

The statement is incorrect. The actual disadvantage of markup pricing is that standard markups are difficult to apply because different products and industries may have varying cost structures, competition, and demand levels that affect the appropriate markup. Using a standard markup may result in overpricing or underpricing a product, leading to lost sales or reduced profits.

A Major Disadvantage of Markup Pricing Is That Standard Markups