Which of the Following Is a Disadvantage of Using the Historical

question 19

Multiple Choice

Which of the following is a disadvantage of using the historical cost-plus approach to arrive at a selling price?

• A) It does not include the shipping and ancillary charges as part of a product's cost.
• B) It ignores demand and competitive conditions in the target markets.
• C) It fails to address the indirect manufacturing costs that a company is likely to incur.
• D) It cannot be used by companies that are new to exporting products.

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Definitions:

Excessive Acquisition Of Objects

The compulsive gathering of items to the point where it negatively impacts one's life, often related to hoarding behavior.

Obsessive-Compulsive Disorder

A mental health disorder characterized by intrusive thoughts (obsessions) that elicit distress and repetitive behaviors or mental acts (compulsions) aimed at reducing the distress.

Negative

Describing an attitude, condition, or behavior characterized by opposition or a lack of positivity.

Intrusive Thoughts

Unwanted and often distressing thoughts or images that spontaneously appear in a person's mind.