AExplain the Difficulties of Determining the Profitability of a Retail

question 71

Essay

a.Explain the difficulties of determining the profitability of a retail division with a high proportion of indirect expenses.
b.Explain the relationship of natural account expenses and functional account expenses.

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Definitions:

Positively Correlated

A relationship between two variables where an increase in one variable is associated with an increase in the other.

Scientific Method

A systematic, organized series of steps that helps ensure objectivity and consistency in exploring a social or scientific question.

Inductive Reasoning

A logical process in which multiple premises, all believed true or found true most of the time, are combined to obtain a specific conclusion.

Deductive Reasoning

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.