This post addresses the concerns using cost-to-charge ratios
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Discuss the four major concerns of using the cost-to charge ratio method.
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The solution discusses the four major concerns of using the cost-to charge ratio method.
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1. While the cost to charge ratio is very simple to use and is effective from the standpoint of being time-saving to implement because it is typically applied to all services provided, one of the major concerns is that by using this method, it can easily underestimate or overestimate the actual cost of services provided. Because it is so uniformly applied to all services based on the predetermined criteria, many services that are provided end ...
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