Which of the Following Statements Describes a Legitimate Disadvantage of Cost-Based

question 10

Multiple Choice

Which of the following statements describes a legitimate disadvantage of cost-based pricing?

• A)Marginal costs and revenues are difficult to measure.
• B)Determining the amount a customer is willing to pay may require sufficient estimation.
• C)Customers may not be willing to pay the price determined by the procedure.
• D)all of the above

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Definitions:

Precision Control

The ability to maintain a very high level of accuracy and consistency in a process or measurement.

Confidence Interval

A scale of values, originating from sample statistical analysis, projected to house the value of an undetermined population parameter.

Standard Deviation

A quantification of the degree to which a set of values is spread out or dispersed, indicating the extent of deviation from the average value.

Confidence Interval

A set of values that comes from sample statistics, expected to encompass the value of a parameter from an unknown population.