Firms that adopt volume objectives believe that:
A)companies should focus on maximizing profits rather than maximizing sales.
B)companies should continue to expand sales as long as their total profits do not drop below a specified minimum return.
C)companies should focus on the image and prestige associated with their products.
D)companies should offer huge discounts even at the cost of running into losses with their products.

Question

Quizplus · Accepted Answer

Firms that adopt volume objectives believe in expanding sales as long as their total profits remain above a specified minimum. This strategy allows companies to achieve economies of scale, which can reduce their costs and increase profits in the long run. However, firms should not compromise on profitability in pursuit of sales volume. Therefore, keeping a minimum threshold for profits is vital.

Firms That Adopt Volume Objectives Believe That