When companies do not want to,or find it too costly to,use market prices,they typically use ________ prices,even though suboptimal decisions may occur.
A)full-cost
B)long-run cost
C)short-run average cost
D)average-cost

Question

Quizplus · Accepted Answer

Full-cost pricing involves including all costs, including overhead and indirect costs, in the price of the product or service. This pricing strategy can be used when market prices are not available or when companies want to ensure that all costs are covered. While suboptimal decisions may occur, full-cost pricing can provide a more accurate picture of the true cost of producing a product or service.

When Companies Do Not Want To,or Find It Too Costly