One of the disadvantages associated with cost-oriented approaches to pricing is that:
A)they give little consideration to supply factors.
B)they are difficult to understand and implement.
C)they fail to adequately reflect competition.
D)they generally do not yield a good price decision.

Question

Quizplus · Accepted Answer

Cost-oriented approaches to pricing may not take into account the prices of competitors, which can result in pricing that is either too high or too low. This can lead to lost sales or reduced profitability. Therefore, cost-oriented approaches may not adequately reflect competition.

One of the Disadvantages Associated with Cost-Oriented Approaches to Pricing