Which of the Following Is Not an Advantage of Cost-Plus

Multiple Choice

Which of the following is not an advantage of cost-plus pricing?

A) It leads to profit maximization.
B) It is an easy method to implement if a firm produces multiple products and has overhead costs that are difficult to allocate to a particular good.
C) It could lead to price stability if the industry is made up of identical firms all using the same method of pricing.
D) It is easy to justify price increases when total costs of production increase.