Some Corporations Choose Unit Sales Rather Than Sales Revenue as an Organizational

question 135

Multiple Choice

Some corporations choose unit sales rather than sales revenue as an organizational goal. Sales revenues can be deceiving because of:

• A)poor sales databases.
• B)inflation.
• C)fluctuations in inventory.
• D)unpredictable sales expenses.

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Definitions:

Profit Margin

A financial metric used to evaluate the profitability of a business, calculated as net income divided by revenue.

Mass Service

A type of service delivery designed to manage and serve large numbers of customers efficiently, often seen in sectors like banking and fast food.

Front Office Orientation

The focus on the part of a business that engages directly with customers, including marketing, sales, and service departments.

Process Costing

A costing method used in manufacturing, where costs are assigned to batches of products rather than individual units, making it efficient for homogeneous products.