Identify a Weakness of the Average-Cost Approach

question 268

Multiple Choice

Identify a weakness of the average-cost approach.

• A) It ignores competitors' costs and prices.
• B) It does not consider historical values.
• C) It does not add a reasonable markup to the average cost of a product.
• D) It is not commonly used.
• E) It is a complex method.

---

Definitions:

Perceptual Errors

Mistakes in judgment or interpretation made by individuals due to their subjective perceptions of people or situations.

Impression Management

The process of consciously making efforts to control and influence the perceptions of others about oneself.

Interview Situations

Scenarios or contexts within which job interviews take place, influencing the dynamics and outcomes of the interview process.

Similarity Error

An error in judgment where individuals assess others based on their own characteristics or beliefs, rather than objective criteria.