An Example of a Performance Measure Linked to Inputs or Costs

question 43

Multiple Choice

An example of a performance measure linked to inputs or costs in social media advertising is

• A)Facebook allows companies' ads to show up in pop-up windows throughout the site.
• B)Facebook charges companies to create a Facebook Page for their brands.
• C)Facebook staff members create ads for companies who want to advertise on Facebook.
• D)Facebook charges for ads to appear along the right-hand section of a Facebook webpage.

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Definitions:

Sales Budget

An estimate of expected sales revenue for a period, forming the basis for planning production, inventory, and cash flow.

Cash Receipts

The total amount of money received by a company during a given period, including all sources of income and revenue.

Cash Disbursements

The outflow of cash for expenses, purchases, or investments by a company during a given period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including direct materials and labor.