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:

Developed Countries

Nations with high levels of industrialization, a high standard of living, and developed infrastructure.

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods, involving increased mechanization.

Per Capita GDP

A measure of the economic output of a nation per individual, calculated by dividing the country's gross domestic product by its total population.

Developed Countries

Nations with advanced economies, high standards of living, and well-established infrastructure and government systems.