Which of the Following Is a Drawback of the Cost-Plus

question 23

Multiple Choice

Which of the following is a drawback of the cost-plus method?

• A) The final price may be so high that the firm's competitiveness is compromised.
• B) It is so variable that the actual price cannot be substantiated.
• C) There is a high turnover of product resulting in cost fluctuations.
• D) It is a time-consuming method.

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Definitions:

Mississippi River

One of the largest river systems in North America, flowing southwards for over 2,300 miles from its source in Minnesota to the Gulf of Mexico, serving as a vital waterway for transportation, commerce, and ecology.

Treaty

A formal and legally binding agreement between two or more sovereign states or international organizations.

War of 1812

The War of 1812 was a conflict fought between the United States and Britain over issues including trade restrictions and the impressment of American sailors, culminating in no significant territorial changes.

Status Quo

The existing state or condition of affairs at a particular time, often used in discussions about maintaining or changing current situations.