Which of the following statements describes a problem with demand-based pricing for services?

Which of the following statements describes a problem with demand-based pricing for services?



A. Prices may not reflect customer value

B. Costs are difficult to trace

C. Heterogeneity of services limits comparability

D. Monetary price must be adjusted to reflect the value of non-monetary costs

E. Labor is more difficult to price than materials


Answer: D. Monetary price must be adjusted to reflect the value of non-monetary costs


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