When Setting Prices for Merchandise, Retailers Must Decide on the Markup

question 114

Multiple Choice

When setting prices for merchandise, retailers must decide on the markup, the markdown, and the ________ for markdowns.

• A) relevance
• B) necessity
• C) percentage
• D) timing
• E) consequence

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Definitions:

Variable Cost

Expenses that vary directly with the volume of output or business operations.

Marginal Cost

The financial outlay required to produce an additional unit of a product or service.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the quantity of output produced, reflecting the cost per unit of output.

Time

A continuous measurement that exists uniformly and independently from everything else, used to sequence events and compare the durations of events and the intervals between them.