What is a disadvantage of cost-plus pricing?
A) It focuses more on volume.
B) It is not very intuitive
C) It is harder to determine how many units need to be sold to break even.
D) It's difficult to determine the correct markup percentage
E) It ignores the feasibility of selling the product.

Question

Quizplus · Accepted Answer

Cost-plus pricing can make it difficult to determine the correct markup percentage because it focuses on covering costs and adding a profit margin without necessarily considering market demand, competition, or the perceived value of the product to the customer.

What Is a Disadvantage of Cost-Plus Pricing