A Negative Aspect of Selecting Unit Volume as a Pricing

question 200

Multiple Choice

A negative aspect of selecting unit volume as a pricing objective is that

• A) production often cannot keep up with demand.
• B) there are increased carrying costs with extensive inventories.
• C) if price reductions are used to achieve volume objectives, it can sometimes come at the expense of profits.
• D) it can create competition between divisions within the organization itself, causing conflicts over the allocation of resources.
• E) it always positively correlates with a sales revenue objective.

---

Definitions:

Resonance Structures

Different Lewis structures that represent the same molecule, showing the delocalization of electrons within the molecule.

Carboxylate Ion

A negatively charged ion (an anion) that results when a carboxylic acid loses a hydrogen ion from its carboxyl group.

Ether Solution

A solution in which an ether, a class of organic compounds containing an oxygen atom connected to two alkyl or aryl groups, serves as the solvent.

Aqueous NaOH

A solution of sodium hydroxide in water, commonly used as a strong base in chemical reactions and industrial processes.