Performance Analysis

question 8

Multiple Choice

Performance analysis:

• A) is based on qualitative factors, as contrasted with sales and cost analysis which are based on quantitative data.
• B) is most useful in situations where the iceberg principal is not likely to be a concern.
• C) indicates why problems have occurred and how to solve them.
• D) may be based on several different performance indexes.
• E) All of these are true.

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Definitions:

Merchantability

A warranty that goods sold meet reasonable quality and usage standards as per the market.

Implied Warranty

A legal assumption that a product will meet certain standards of quality and reliability even if not explicitly stated.

Merchantability

Relates to the guarantee that a product sold meets reasonable expectations of performance and quality as understood in the marketplace.

Implied Warranty

A legal term for the assurance that a product meets certain quality and reliability standards without being explicitly stated.