Which of the Following Is Not a Flaw of Cost-Plus

question 193

Multiple Choice

Which of the following is not a flaw of cost-plus pricing?

• A)Cost-plus pricing is complex to calculate.
• B)Cost-plus pricing implies that the cost of the seller's operational inefficiencies should be borne by the customer.
• C)A markup based on cost does not represent the value to the customer.
• D)The price customers are willing to pay represents the value of the product or service.

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Definitions:

Increase

A rise in the value, amount, or level of something.

Gold Futures

Contracts to buy or sell a specific amount of gold at a predetermined price on a specified future date, used for speculation or hedging.

Short Position

An investment strategy where an investor sells borrowed securities anticipating a price decline, aiming to buy them back at a lower price for profit.

Price

The amount of money expected, required, or given in payment for something.