If DLT Company's goal is to maximize cash flow, which of the following pricing strategies should it adapt?
A) Lower prices to raise the sales volume.
B) Reduce direct costs and overhead.
C) Set a higher price to raise perceived quality.
D) Set prices at a level that minimizes sales.
E) None of these are correct.

Question

If DLT Company's goal is to maximize cash flow, which of the following pricing strategies should it adapt?
A) Lower prices to raise the sales volume.
B) Reduce  direct costs and overhead.
C) Set a higher price to raise perceived quality.
D) Set prices at a level that minimizes sales.
E) None of these are correct.

Quizplus · Accepted Answer

Reducing direct costs and overhead directly impacts the cash flow by decreasing the expenses associated with producing goods or services, thereby maximizing the cash flow from operations without necessarily altering sales volume or pricing strategies.

If DLT Company's Goal Is to Maximize Cash Flow, Which