Nagy Enterprises Had a 32% Increase in Sales After Sending

question 5

Multiple Choice

Nagy Enterprises had a 32% increase in sales after sending its employees to the Reilly School of Sales. However, without the use of a control group, it is difficult to determine if:

• A) the money was spent wisely
• B) the 32% increase was actually due to the training
• C) the increase was due to outside factors
• D) the trainees actually learned anything

---

Definitions:

Senior Management

High-level executives responsible for the overall management and effectiveness of an organization.

Inventory Levels

The quantity of goods and materials on hand at any given time in a company.

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Variable Costing

A cost system that excludes fixed costs from product costs and writes off all fixed costs against income in the year that the costs are incurred. Also called direct costing.