what are the disadvantages of marginal costing ?
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Explanation:
Long-term pricing. The method is completely unacceptable for long-term price setting, since it will result in prices that do not capture a company's fixed costs.
Ignores market prices. Marginal cost pricing sets prices at their absolute minimum. ...
Customer loss. ...
Cost focus.
Answered by
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Explanation:
Disadvantages of Marginal Cost Pricing
Long-term pricing. The method is completely unacceptable for long-term price setting, since it will result in prices that do not capture a company's fixed costs.
Ignores market prices. Marginal cost pricing sets prices at their absolute minimum. ...
Customer loss. ...
Cost focus.
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