Which of the Following Is a Weakness of the Average-Cost

question 48

Multiple Choice

Which of the following is a weakness of the average-cost approach?

• A)It ignores competitors' costs and prices.
• B)It does not consider historical values.
• C)It does not add a reasonable markup to the average cost of a product.
• D)It is not commonly used.
• E)It is a complex method.

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Definitions:

Epiglottis

A leaf-shaped flap of cartilage located behind the tongue, at the top of the larynx, which prevents food and drink from entering the windpipe during swallowing.

Trachea

The windpipe, a tube extending from the larynx to the bronchi, conducting air to and from the lungs in humans and other animals.

pH

A scale used to specify the acidity or basicity of an aqueous solution, with lower values being more acidic and higher values more basic.

Sphincters

Circular muscles that control the passage of substances through the openings of the body.