Which of the Following Statements Is True

question 60

Multiple Choice

Which of the following statements is true?

• A)The sales and selling expense budgets communicate to the sales force what is expected of them.
• B)A branch sales manager should always be rewarded for not spending all of the unit's expenses budgets.
• C)A branch sales manager has little input into most budget making processes.
• D)All of these.
• E)None of these.

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Definitions:

Capital Intensity Ratio

A financial metric that measures the amount of capital needed per unit of output or the capital required to generate a dollar of revenue.

Operating Capacity

The maximum output that a company can produce under normal conditions.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholder's equity.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage or debt proportion.