Why Is Cost-Plus Pricing Criticized

question 119

Multiple Choice

Why is cost-plus pricing criticized?

• A)It includes selling and administrative costs in determining the product cost.
• B)It does not consider the fixed manufacturing overhead in determining the product cost.
• C)It is inherently circular for manufacturing firms.
• D)It requires a high level of technical expertise to price products using this method.

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Definitions:

Slavic Peoples

Ethnic groups native to Europe and Asia, most numerously populating Eastern Europe, Russia, and parts of the Balkans, recognizable by their use of Slavic languages.

Roman Empire

An ancient empire centered around the city of Rome, known for its engineering achievements, legal system, military conquests, and pivotal role in shaping Western civilization.

Large-Scale Agriculture

Farming operations that involve extensive land areas and high levels of mechanization and technology, producing large volumes of crops or livestock.

Universal Entitlement

Policies or systems where all members of a society have the right to receive certain benefits or services, such as healthcare or education, regardless of socioeconomic status.