Which of these is a major limitation of cost-based pricing?
A) It does not consider competitive prices.
B) Excessive profits are usually sought.
C) It is hard to implement.
D) Costs are more difficult to estimate than consumer demand at various price levels.

Question

Quizplus · Accepted Answer

Cost-based pricing focuses on covering costs and adding a markup without considering competitors' prices, which can make a product non-competitive if priced too high or too low compared to similar offerings in the market.

Which of These Is a Major Limitation of Cost-Based Pricing