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

---

Definitions:

Landrum-Griffin Act

A U.S. federal law enacted in 1959 to protect union members' rights and improve labor union governance and transparency.

Financial Records

Documents that track and detail the financial activities, status, and performance of an individual, organization, or business.

Department of Labor

A government department responsible for overseeing federal labor laws regarding workers' rights, working conditions, wage standards, unemployment insurance, and employment statistics.

Federal Mediation

Involves intervention by a government agency to facilitate negotiation between conflicting parties, such as in labor disputes, to reach an agreement.