Which of the following is a disadvantage of using the historical cost-plus approach to arrive at a selling price?

A) It does not include the shipping and ancillary charges as part of a product's cost.
B) It ignores demand and competitive conditions in the target markets.
C) It fails to address the indirect manufacturing costs that a company is likely to incur.
D) It cannot be used by companies that are new to exporting products.


B

Business

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