Average-cost pricing may lead to losses because there are a variety of costs-and each changes
A) in a similar fashion.
B) in a different way as output changes.
C) in a similar fashion with time.
D) in an exponential manner.
E) in a highly predictable and similar manner.

Question

Quizplus · Accepted Answer

Average-cost pricing assumes that costs remain constant as output changes, but in reality, different costs change in different ways as output changes. This can lead to inaccurate pricing decisions, potentially resulting in losses.

Average-Cost Pricing May Lead to Losses Because There Are a Variety