Answer: By considering these hidden costs, a supermarket can better understand its overall expenses and factor them into pricing strategies to ensure profitability.
Step-by-step explanation: In addition to the initial cost of purchasing products, a supermarket may have hidden costs that are associated with running the business. Two examples of these hidden costs are:
1. Overhead Expenses: Supermarkets incur various overhead expenses to operate smoothly. These costs include rent or mortgage payments for the store space, utilities such as electricity and water, maintenance and repairs, insurance premiums, and security measures. These expenses are essential for the functioning of the supermarket but may not be directly visible to customers.
2. Employee Salaries and Benefits: Supermarkets require staff to manage various tasks, such as stocking shelves, operating cash registers, and providing customer service. Employee salaries, wages, and benefits are considered hidden costs because they are not directly tied to the price of products but are necessary for the supermarket's operations. These costs include wages, payroll taxes, health insurance, retirement contributions, and paid time off.