Business Studies, asked by wdqd815, 8 months ago

Give advantages and disadvantages of cost plus pricing method.

Answers

Answered by queensp73
0

Answer:

Disadvantages of Cost Plus Pricing

Ignores competition. A company may set a product price based on the cost plus formula and then be surprised when it finds that competitors are charging substantially different prices. ...

Product cost overruns. ...

Contract cost overruns. ...

Ignores replacement costs.

Explanation:

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