Which of the following can be considered disadvantages of cost$-$based pricing?

The greater the portion of unassigned costs, the greater the likelihood of overpricing and underpricing individual products.

Cost$-$based pricing requires accurate cost assignments.

Cost$-$based prices are based on costs incurred plus a reasonable profit.

Cost$-$based pricing assumes goods or services are relatively scarce, and customers who want a product or service are, generally, willing to pay

the price.

In a competitive environment, cost$-$based approaches increase the time and cost of bringing new products to market.

QUESTION $15$

Which of the following statements are false when making a decision between two alternatives? $($Select all that apply$)$

Taxes are never relevant

Fixed costs are never relevant

Variable costs are relevant when the decision alternatives have the same activity levels

Variable costs are relevant when the decision alternatives have different activity levels