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:

Cash Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Balance Sheet

A financial statement that summarizes a company’s assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.

Cash Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in cash.