A negative aspect of selecting unit volume as a pricing objective is that
A)production can often not 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)the number of units that need to be sold in order to avoid carrying more than minimal inventory.

Question

Quizplus · Accepted Answer

Selecting unit volume as a pricing objective may lead to price reductions to achieve volume objectives, which can come at the expense of profits. This is a negative aspect of such pricing objective.

A Negative Aspect of Selecting Unit Volume as a Pricing