List the Basic Ingredients of Good Performance Measures

question 47

Essay

List the basic ingredients of good performance measures.

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Definitions:

Selling Price

The amount for which a product or service is sold to the customer, determined by factors like cost, market demand, and competitive pricing.

Margin Of Safety

The difference between actual sales and sales at the break-even point. It measures the extent to which sales can decline before a business incurs a loss.

Variable Costs

Expenditures that adjust in relation to the business's output or operational intensity.

Fixed Expenses

Costs that do not fluctuate with the volume of sales or production levels, remaining constant even as business activities change.