A Major Drawback of Cost-Based Pricing Is That It

question 7

Multiple Choice

A major drawback of cost-based pricing is that it:

• A) Ignores the full cost of a product
• B) Ignores the relationship between customer demand and price
• C) Ignores variable costs and includes only fixed costs
• D) Can be used only when all costs have been incurred

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Definitions:

Crying

The act of shedding tears as a response to an emotional state, such as sadness, happiness, or pain.

Ignoring

A behavior management strategy where certain behaviors are deliberately not reinforced, with the aim of reducing or extinguishing them by not providing attention.

Positive Reinforcement

The process of increasing the likelihood of a behavior by following it with a pleasant or rewarding stimulus.

Conditioned

Refers to a behavior or response that has been learned or acquired through association with an environmental stimulus.