Market skimming involves setting a high initial price to capture maximum revenue from customers willing to pay more, often before gradually lowering prices. It works best when buyers are relatively price-insensitive, when the product has strong differentiation, when high price supports a quality image, or when competitors cannot quickly enter or expand capacity. Option A is not true because falling unit costs with increased production generally supports market penetration pricing, where lower prices help build volume and market share. Skimming usually depends less on high volume and more on early high-margin sales. Options B, C, and D are consistent with a skimming strategy. Internal auditors reviewing pricing strategy should verify that management’s pricing assumptions match market conditions and capacity constraints. Therefore, Option A is correct.