As the Regional Manager, Ted's Performance Is Evaluated on the Difference

question 48

Multiple Choice

As the regional manager, Ted's performance is evaluated on the difference between the sales revenues generated by his region and the cost of making those goods and services. Ted is being evaluated using:

• A) a profit budget approach.
• B) a revenue budget approach.
• C) a cash flow budget approach.
• D) a cost budget approach.
• E) an expense budget approach.

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Definitions:

Budgeted Sales

The projected amount of sales revenue a company expects to earn over a specific period, based on historical data, market analysis, and estimated growth rates.

Cash Collected

The total amount of cash received by a business during a specific period, including revenues and other income streams.

Credit Sales

transactions where goods or services are sold to a customer with payment to be received at a later date.

Cash Receipts

The total amount of cash collected by a business during a defined period, including revenues from sales, loans, investments, and other sources.