Which of the following is an advantage of using cost-based pricing methods?
A) They consider external factors such as competition.
B) They include consideration of the effects of demand.
C) They are relatively simple to calculate.
D) They make accurate cost estimating a simple process.
E) They take the product life cycle into consideration.

Question

Quizplus · Accepted Answer

Cost-based pricing methods are relatively simple to calculate as they involve adding a markup to the cost of producing the product or service. However, they do not take into account external factors such as competition or the effects of demand. The accuracy of cost estimating can also vary depending on the complexity of the production process. Product life cycle is not directly relevant to cost-based pricing methods.

Which of the Following Is an Advantage of Using Cost-Based