A Negative Aspect of Selecting Unit Volume as a Pricing

question 101

Multiple Choice

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

• A)production can often not 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)the number of units that need to be sold in order to avoid carrying more than minimal inventory.

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Definitions:

Parietal

Referring to the parietal lobe of the brain, which is involved in processing sensory information from the body, understanding spatial orientation, and language processing.

Geons

Basic three-dimensional shapes that are the building blocks for recognizing objects, according to the recognition-by-components theory.

Occipital Cortex

The part of the brain located at the back of the head, crucial for processing visual information.

Temporal Cortex

Part of the cerebral cortex involved in processing auditory information and encoding memory.