In the context of pricing strategies, unlike flexible cost-plus pricing, rigid cost-plus pricing:

A) adjusts the price depending on the customer, order size, and other competitive influences.
B) leads customers to expect low prices that firms have difficulty raising in the future.
C) is used by global companies that face intense competition.
D) typically fails to account for buyer demand, income levels, and competition.

Rigid Cost-plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of production to determine the price of a product, without flexibility.

Pricing Strategies

The methods and tactics businesses employ to price their products or services effectively to attract customers and achieve profitability.

Flexible Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's variable cost, allowing for adjustments based on market conditions.