A Negative Aspect of Selecting Unit Volume as a Pricing

question 152

Multiple Choice

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

• A)production often can 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)it always positively correlates with a sales revenue objective

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