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When a Manager Is Told to Maximize the Revenues from the Sales

question 28

Multiple Choice

When a manager is told to maximize the revenues from the sales of goods and services produced, this is an example of a(n) ________ budget approach.


Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.

Margin

The difference between the selling price of a product and the cost of the product, representing profitability.

Sales

The total revenue earned from the sale of goods or services related to a company's primary operations.

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, calculated as value-added time divided by the total cycle time.

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