The Problem with Sales-Oriented Pricing Objectives Is That

question 240

Multiple Choice

The problem with sales-oriented pricing objectives is that:

• A) many managers are evaluated by their level of sales.
• B) larger sales don't necessarily lead to higher profits.
• C) the number of units sold does not consider possible growth in the market.
• D) sales growth usually leads to declining profits.
• E) None of these alternatives is correct.

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Definitions:

Merchandise Inventory

Goods that a company intends to sell to customers that are considered as current assets on the balance sheet.

Freight Charge

The cost associated with the transportation of goods from one place to another.

Store Equipment

Fixed assets like shelves, cash registers, and display units used in the operations of a retail store.

Display Rack

A fixture in stores and exhibitions used to showcase products or materials to customers and visitors.