The Major Weakness of Average-Cost Pricing Is That It

question 130

Multiple Choice

The major weakness of average-cost pricing is that it

• A)ignores likely customer demand at different prices.
• B)usually leads to losses instead of profits.
• C)always results in a profit that is less than expected.
• D)is too hard for most managers to use.
• E)All of these are major weaknesses of average-cost pricing.

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