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:

Xanax

A prescription medication, generically known as alprazolam, commonly used to treat anxiety and panic disorders by acting on the brain and nerves to produce a calming effect.

Mood Stabilizers

Medications used to treat mood disorders by helping to balance emotional highs (mania) and lows (depression).

Valium

A medication, generic name diazepam, used to treat anxiety, alcohol withdrawal, and seizures.

Zoloft

A prescription medication classified as a selective serotonin reuptake inhibitor (SSRI), used to treat depression, anxiety, and other mental health conditions.