What Is the First Step in Implementing the Objective-And-Task Approach

question 47

Multiple Choice

What is the first step in implementing the objective-and-task approach? 

• A) Identifying last year's sales 
• B) Determining costs based on a build-up analysis 
• C) Comparing expenditures against industry benchmarks 
• D) Calculating a marginal analysis

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Definitions:

Turnover

The rate at which inventory or assets of a business are replaced or sales are made over a specific period.

Margin

Generally refers to the difference between the selling price of a good or service and its cost, expressed as a percentage of the selling price.

Residual Income

The income that remains after deducting all required costs of capital from operating income, used as a measure of profitability.

Margin

Margin refers to the difference between the selling price of a good or service and its cost of production, usually expressed as a percentage of the selling price.