Companies Generally Set Sales Targets Higher Than Break-Even Figures Because

question 58

Multiple Choice

Companies generally set sales targets higher than break-even figures because

• A)it indicates the sales needed to attain a certain level of profit.
• B)assists in planning for new equipment if sales can be reached.
• C)an income objective is set that can be communicated throughout the company.
• D)break-even analysis may not be effective in all situations.

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Definitions:

Stimulus

A stimulus is anything in the environment that one can respond to.

Behavior

The range of actions and mannerisms made by individuals, organisms, systems, or artificial entities in conjunction with themselves or their environment.

Frequency

The rate at which a vibration occurs that constitutes a wave, either in a material (as in sound waves), or in an electromagnetic field (as in radio waves and light).

B.F. Skinner

An influential American psychologist known for his work in behaviorism, particularly the development of the theory of operant conditioning.