Which of the Following Statements Is True About Average Cost-Pricing

Multiple Choice

Which of the following statements is true about average cost-pricing?

A) It can result in losses if actual sales are higher than expected.
B) It is more profitable if actual sales are lower than expected.
C) It does not take the demand curve into account when setting prices.
D) It works better in practice than it does in theory.
E) It can be used to set a price without an estimate of the quantity to be sold.