All of the Following Are Disadvantages of Cost-Plus Pricing Except

question 103

Multiple Choice

All of the following are disadvantages of cost-plus pricing except

• A)It ignores the price elasticity of demand: for example, it may be possible to increase profits by raising or lowering price.
• B)If the industry comprises identical firms (with identical costs), markups could be consistent among firms leading to no one firm having a competitive edge in terms of price.
• C)Allocating and apportioning business overheads to individual products could be somewhat arbitrary.
• D)The business has less incentive to cut or control costs: if costs increase, then selling prices increase. Consequently, this might further erode a firm's competitiveness.

Recognize how succession management is inherently linked to organizational strategy, unlike replacement planning which is job-focused.

Understand HR planning's role in identifying immediate and future needs for critical positions to ensure business continuity.

Grasp the importance of current performance as a predictor of future performance in HR practices.

Comprehend the broader focus and objectives of succession management compared to replacement planning.

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Definitions:

Gas Exchange

The biological process by which gases (such as oxygen and carbon dioxide) are transferred between living organisms and the environment, typically occurring in the lungs in humans and across the surfaces of leaves in plants.

Endosymbiosis

A theory explaining the origin of eukaryotic cells from prokaryotic organisms through a symbiotic relationship.

Chloroplast

A type of organelle found in plant cells and some algae, which is the site of photosynthesis and responsible for producing energy through light.

Thylakoid Membrane

The thylakoid membrane is a component of chloroplasts that houses the machinery for the light reactions of photosynthesis, including the chlorophyll pigments.