Which of the following is a drawback of cost-based pricing?
A) Sellers earn a fair return on their investment.
B) By tying the price to cost, sellers simplify pricing.
C) When all firms in the industry use this pricing method, prices tend to be similar.
D) This method ignores demand.
E) Without a standard markup, consumers don't know when they are being overcharged.
D
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Under the Secured Transactions Article of the UCC, all of the following are needed to create enforceable security interest except
A. A security agreement must exist. B. The secured party must give value. C. The debtor must have rights in the collateral. D. A financing statement must be filed.
Under the first-in, first-out (FIFO) method, the cost of equivalent units of production is calculated by ________
A) summing up only the transferred in costs of each department B) combining beginning inventory costs with current period costs C) considering only the transferred out costs of each department D) accounting for beginning inventory costs separately from current period costs