Data Are Useful for Understanding Individual Sales, but to Gain

question 82

Multiple Choice

Data are useful for understanding individual sales, but to gain deeper insight into a business, data need to be turned into information.Which of the following offers an example of turning data into information?

• A)Who are my best customers?
• B)What is my best-selling product?
• C)What is my worst-selling product?
• D)All of these

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Definitions:

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, resulting in the average cost per unit of output decreasing with increasing scale.

Conglomerate Merger

A type of merger where two companies operating in unrelated business areas combine their operations.

Diversification

An investment strategy to reduce risk by allocating investments amongst various financial instruments, industries, or other categories.

Perspective of Stockholders

The viewpoint or interests of shareholders in a corporation, often focused on return on investment, governance, and financial health.