One of the Four Factors That Motivate Managers to Manage

question 14

Essay

One of the four factors that motivate managers to manage reported earnings is meeting external expectations.Which external stakeholders have an interest in a company's financial performance,and why?

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Definitions:

Standard Deviation

A statistic that measures the dispersion or spread of a set of data points relative to its mean, indicating how much variation exists from the average.

Demand Aggregation

Combining demand from different sources to gain efficiencies in supply chain management, such as bulk purchasing or centralized distribution.

Regions

Geographically defined areas characterized by certain distinguishing features, which can be natural, social, economic, or political.

Continuous Review Policies

Inventory management policies that involve the continuous monitoring of inventory levels and replenishing stock whenever it dips below a predetermined point.