Firms with a Volume or Sales Objective Are Most Likely

question 38

Multiple Choice

Firms with a volume or sales objective are most likely to:

• A) reduce prices to maximize sales or gain a specific market share.
• B) charge a higher price than most competitors to increase revenue.
• C) raise prices to maintain prestige.
• D) match competitors' prices.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Service Income

Income earned from the provision of services to clients or customers.

Unearned Service Revenue

Income received by a company for services yet to be provided, recorded as a liability until the services are performed.