Which of the following describes graduated recovery?

• A. A pricing method where the mark-up varies.
• B. A pricing method where the mark-up remains constant.
• C. A pricing method where the mark-up varies by category.
• D. A pricing method that uses a fixed discount schedule.

Answer: (C)

Graduated recovery means applying different markups to different product or service categories to reflect their costs, value, and market demand. In funeral merchandising, this translates to giving each category—such as caskets, vaults, urns, and service packages—its own markup schedule. By varying the markup by category, the business can recover costs across the full range of merchandise while aligning prices with how customers perceive value in each category. That’s why the description that best fits is markups that vary by category. This differs from a single, constant markup across every item or from a fixed discount plan, which don’t account for category-based differences in value and cost.