Which of the following statements describes a problem in cost-based pricing for services?

Which of the following statements describes a problem in cost-based pricing for services?



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

B. Heterogeneity of services limits comparability

C. Prices may not reflect customer value

D. Labor is more difficult to price than materials

E. Information on service costs is not available to customers


Answer: D. Labor is more difficult to price than materials


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