One Serious Limitation of the Cost-Plus Method for Price Determination

One serious limitation of the cost-plus method for price determination is that the method:

A) is not a good pricing method for companies whose pricing goal is a target return on investment.
B) is difficult for an inexperienced marketer to use.
C) ignores fixed costs in the short-run.
D) normally does not allow for the fact that there are different types of costs and these costs are affecteddifferently by changes in level of output.
E) assumes demand is a flexible, dynamic activity.

Correct Answer:

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