Supermarket Managers Use Standard Markup Pricing Because It Is Particularly

question 12

Multiple Choice

Supermarket managers use standard markup pricing because it is particularly suited to situations when

• A) there is a large number of products and estimating the demand for each would be difficult and time consuming.
• B) there is a large number of product lines, all with basically the same product attributes.
• C) there is a specific profit goal that needs to be achieved.
• D) there is a policy of selling every item in a product line at the same price regardless of the product class.
• E) the products are perishable or seasonal.

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Definitions:

Variable Pay

Tying pay to some measure of individual, group, or organizational performance.

Employee Compensation

The total amount of wages, salaries, and benefits that an employer pays to its employees for their work.

Rate Busting

A term used, particularly in labor, to describe the act of working more quickly or efficiently than the expected or standard rate, which can disrupt agreed-upon wage scales or norms.

Group Incentives

Motivational rewards offered to a group of employees for achieving certain goals or performance benchmarks.