One of the drawbacks to the use of cost-based pricing is ________.
A)the strategy's complexity
B)the need for a rigid organisational structure for implementation
C)how difficult it is to cover all production and marketing costs with this strategy
D)the strategy's inability to consider competitive factors
E)All of the above

Question

Quizplus · Accepted Answer

Cost-based pricing focuses on covering costs and achieving a desired profit margin but does not take into account the competitive landscape, which can lead to pricing that is not competitive in the market.

One of the Drawbacks to the Use of Cost-Based Pricing