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.

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Definitions:

Cultural Assimilation

The process by which individuals or groups from different cultures come to adopt the cultural norms and values of another culture, often the dominant culture in a society.

Strategic Benefits

Pertains to the long-term advantages or positive outcomes that align with and support an organization's overarching goals.

Financial Benefits

Compensation and perks, beyond base salary, offered to employees, including bonuses, stock options, and retirement plans, to enhance job satisfaction and loyalty.

Management Needs

The specific requirements or resources that managers need to effectively run an organization or team, including personnel, technology, and information.