The Best Way to Break Down and Analyze Sales Data

question 134

Multiple Choice

The best way to break down and analyze sales data is:

• A) by order size.
• B) by geographic region.
• C) by customer type.
• D) by product, package, size, grade or color.
• E) any of these are correct, depending on the situation.

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Definitions:

Law of Diminishing Returns

The principle that as investment in a single factor of production increases, holding all others constant, the incremental gains in output will eventually decrease.

Law of Diminishing Marginal Utility

states that as a person consumes more of a good or service, the utility (satisfaction) gained from each additional unit decreases.

Principal-agent Problem

A dilemma occurring when one person or entity (the agent), is able to make decisions on behalf of, or that impact, another person or entity: the principal.

Complementary Resource

A good or service that enhances the use or value of another good or service when the two are used together.