Which of the following describes a disadvantage associated with cost-oriented approaches to pricing?
A) Give little consideration to supply factors
B) Difficult to understand and put into practice
C) Fail to adequately reflect competition
D) Generally do not yield a good price decision

Question

Quizplus · Accepted Answer

Cost-oriented approaches to pricing have the advantage of simplicity and many practitioners believe that they generally yield a good price decision. However, such approaches have been criticized for two basic reasons. First, cost approaches give little or no consideration to demand factors. Second, cost approaches fail to reflect competition adequately.

Which of the Following Describes a Disadvantage Associated with Cost-Oriented