Which of the following is a weakness of the average-cost approach?
A)It ignores competitors' costs and prices.
B)It does not consider historical values.
C)It does not add a reasonable markup to the average cost of a product.
D)It is not commonly used.
E)It is a complex method.

Question

Quizplus · Accepted Answer

One of the dangers of average-cost pricing is that it ignores competitors' costs and prices.

Which of the Following Is a Weakness of the Average-Cost