The Basic Weakness of the Cost-Plus Loan Pricing Method Is

question 100

True/False

The basic weakness of the cost-plus loan pricing method is that it gives little regard to the competition from other lenders while setting the loan price.

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Definitions:

Excess Amortizations

Amortization expenses that exceed the norm or expectation for a particular asset, typically resulting from an aggressive estimation of the asset's useful life or value.