Which of the Following Is Not a Flaw of Cost-Plus

question 193

Multiple Choice

Which of the following is not a flaw of cost-plus pricing?

• A)Cost-plus pricing is complex to calculate.
• B)Cost-plus pricing implies that the cost of the seller's operational inefficiencies should be borne by the customer.
• C)A markup based on cost does not represent the value to the customer.
• D)The price customers are willing to pay represents the value of the product or service.

---

Definitions:

Wages

Payments made to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Commencement

The act or time of beginning; refers to the start of something, such as a process, event, or period in time.

Bankruptcy Legislation

Refers to laws that govern the process through which individuals or entities who are unable to meet their financial obligations can seek relief from some or all of their debts.

Dual Purpose

Refers to an item or activity designed for two distinct functions or goals, often seen in tax, legal, or functional contexts.