​John Learned in Business School That Full-Cost Pricing Is a Very

Multiple Choice

​John learned in business school that full-cost pricing is a very common cost-oriented pricing procedure,and he planned to use it in setting price for his firm's new software product.However,his boss is not convinced that full-cost pricing is best,and wants John to list both its pluses and minuses in a memo.Which of the following should be included in John's list?

A) ​Full-cost pricing will enable the firm to recover all the costs it incurred while developing the software, including the overhead of running its research and development lab.
B) ​Full-cost pricing will take into account the likely competitive moves of other software developers.
C) ​Full-cost pricing is based on a reliable projection of customer demand in the software market.
D) ​Full-cost pricing does not ensure that overhead costs will be allocated appropriately.
E) ​Full-cost pricing can use only those costs that are directly attributable to a specific output, like production of 1000 units of the software.