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.

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Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience, often within a specific context like governmental or organizational roles.

EFT Program

Electronic Funds Transfer Program; a system that allows the electronic movement of money from one bank account to another.

Federal Income Taxes

Taxes levied by the U.S. federal government on individual and corporate income.

FICA Taxes

Federal taxes in the United States collected to fund Social Security and Medicare, required deductions from employees’ paychecks.