Negative Aspect of Selecting Unit Volume as a Pricing Objective

question 224

Multiple Choice

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.

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Definitions:

Seasonal Index

A statistical measure that reflects the typical fluctuation of a variable (like sales or production) due to seasonal effects.

Monthly Series

A sequence of data points collected or recorded on a monthly basis, often used in statistics and economic forecasting.

Accumulation

Accumulation refers to the process of gradually collecting or gathering an increasing quantity of a particular substance, items, or data over time.