Interpersonal Bias, Lack of an Outcome Focus and the Halo

question 29

Multiple Choice

Interpersonal bias, lack of an outcome focus and the halo effect are all problems encountered with:

• A) Marketing audits
• B) Cost/profitability analyses
• C) Performance measures based on a salesperson's service record
• D) The BARS system
• E) Subjective performance rating forms

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Definitions:

Unit Variable Costs

Unit Variable Costs refer to the expenses that vary directly with the production volume, including materials and labor directly involved in manufacturing.

Variable Cost

Expenses that fluctuate in direct correlation with the volume of production or business operations.

Contribution Margin Ratio

A financial metric that represents the portion of sales revenue that is not consumed by variable costs and can contribute to covering fixed costs.

Break-Even Point

The point at which total costs equal total revenue, resulting in no profit but also no loss.