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:

Planning Activities

The process of outlining the tasks, schedule, resources, and steps necessary to achieve project objectives.

Major Divisions

The primary organizational units within a corporation or entity, each focusing on a different aspect of the business.

Project Manager

A professional responsible for leading the planning, execution, monitoring, control, and closure of a project.

Initiation Phase

The beginning stage of a project or plan where objectives are defined, teams are formed, and projects are officially started.