A Disadvantage of Average-Cost Pricing Is That It

question 238

Multiple Choice

A disadvantage of average-cost pricing is that it

• A) does not consider historical values.
• B) is a highly complicated method of pricing.
• C) is rarely a useful input to pricing decisions.
• D) is easy to lose money with average-cost pricing.
• E) does not help understand how costs operate at different levels of output.

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