In the Cost-Plus Method of Pricing, There Is One Major

question 19

Multiple Choice

In the cost-plus method of pricing, there is one major drawback that sometimes precludes exports from using it. What is this drawback?

• A) The cost of the final price may be so high that the firm's competitiveness is compromised.
• B) It is so variable that the actual price cannot be substantiated.
• C) There is high turnover of product resulting in costing fluctuations.
• D) Each of the elements has to be examined individually, providing complex structures grids.

---

Definitions:

Persuasive Messages

Communications designed to convince or influence an audience to take a specific action or adopt a particular belief by appealing to reason or emotion.

Analogy

A comparison between two things, typically on the basis of their structure and for the purpose of explanation or clarification.

Familiar

Well known from long or close association, easily recognized or understood based on prior experience.

Unfamiliar

Not known or recognized, often referring to concepts, words, or environments that are not understood due to a lack of experience.