Which of the Following Is a Drawback of Cost-Based Pricing

question 85

Multiple Choice

Which of the following is a drawback of cost-based pricing?

• A) Sellers earn a fair return on their investment.
• B) By tying the price to cost, sellers simplify pricing.
• C) When all firms in the industry use this pricing method, prices tend to be similar.
• D) This method ignores demand.
• E) Without a standard markup, consumers don't know when they are being overcharged.

Understand the principles of effective territory management and the establishment of sales territories.

Understand the concepts of account analysis and its application in sales planning.

Comprehend the strategies and approaches to territory management and sales call allocation.

Recognize the significance of the undifferentiated selling approach and its applications.

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Definitions:

Less Care

A situation or behavior characterized by reduced attention or diligence towards something.

Moral Hazard

A situation in which one party is motivated to take undue risks because the consequences of those risks will be borne by another party.

Less Effort

The minimal amount of work or energy applied to accomplish a task or objective.

Relationship

A connection or association between two or more concepts, objects, or individuals, often highlighting how they interact or affect each other.