Nancy Is Developing Performance Measures for Her Sales Force

question 13

Multiple Choice

Nancy is developing performance measures for her sales force.She finds:

• A)Total sales volume is the best measure of performance.
• B)Expense ratios show how well the salesperson is managing his or her personal finances.
• C)Qualitative measures are more difficult to measure than quantitative ones.
• D)All of the choices are correct.

Evaluate the impact of sales volume changes on contribution margin and net income through the calculation of the degree of operating leverage.

Compare and contrast income calculations under absorption and variable costing, understanding the implications on financial reporting and decision making.

Interpret financial data to assess the company's operational efficiency and market position, employing concepts like sales mix and selling price per composite unit.

Understand the concepts of unit contribution margin and contribution margin ratio and their significance to a company's cost structure.

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Definitions:

Hepatomegaly

An enlargement of the liver beyond its normal size, which can be a sign of various diseases or conditions.

Enlarged Liver

A condition where the liver is larger than normal, often indicating liver disease or inflammation.

Distended Bowel

A condition where the bowel becomes enlarged or swollen due to excess gas, fluid, or other substances.

Hyperthyroidism

a condition characterized by the overproduction of thyroid hormones by the thyroid gland, leading to various systemic symptoms.