Respuesta :
Answer:
The correct answer is:
A. Retail Costing
Retail costing involves determining the cost of an item by subtracting the desired profit margin from the sales price. This method is commonly used in retail and merchandising industries to establish appropriate pricing strategies and ensure profitability.
Explanation:
Retail costing is a method used to determine the cost of an item by subtracting the desired profit margin from the sales price. Here's how it works:
1. **Sales Price:** This is the price at which the item is sold to the customer.
2. **Desired Profit Margin:** This is the amount of profit that the retailer wishes to make on each sale.
By subtracting the desired profit margin from the sales price, the retailer can calculate the cost of the item. This cost represents how much the retailer can afford to spend on acquiring or producing the item while still achieving the desired profit margin.
Retail costing is commonly used in retail and merchandising industries to set appropriate pricing strategies. It helps retailers ensure that they are pricing their products competitively while still making a profit on each sale.
