A Good Reason for Using Performance Indexes Is To

question 9

Multiple Choice

A good reason for using performance indexes is to:

• A) convert sales data to profit data.
• B) make it easier to compare situations.
• C) find territories where actual sales are very high or low.
• D) direct management attention to territories where the market potential is greatest.
• E) None of the above is true.

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Definitions:

Financial Accounting

The field of accounting focused on the summary, analysis, and reporting of financial transactions relating to a business.

Management Accounting

A branch of accounting that focuses on the preparation and analysis of financial information for internal decision-makers within an organization.

Insignificant Variance

A financial term referring to small differences between expected and actual figures that are not considered material for decision-making purposes.

Cause

A reason for an action or condition, or something that brings about an effect or result.