Sales Teams Have Little Incentive to Report Low Sales Projections

question 128

True/False

Sales teams have little incentive to report low sales projections to their CEOs-prediction markets help to overcome this problem.

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Definitions:

Output

The amount of products or services generated by a company, sector, or economic system within a specific timeframe.

Marginal Cost

The expense incurred from manufacturing an extra unit of a product or service.

Average Total Cost

A rephrased definition: The per unit production cost calculated by dividing the sum of all production costs by the quantity of output produced.

Variable Cost

Costs that change in proportion to the level of output or activity of a business.