True. Markups are often used in retail and pricing strategies primarily for convenience, as they provide a simple way to calculate the selling price based on costs. By applying a markup to the cost of a product, businesses can easily determine the selling price while ensuring that all costs are covered and a profit margin is achieved. However, it’s important to note that while convenience is a factor, markups are also a reflection of market conditions, competition, and consumer demand.
True or false: Markups are related to selling price mostly for convenience.
1 answer