A Good Reason for Using Performance Indexes Is To

question 102

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 these is true.

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Definitions:

Cash Flows

The total incoming and outgoing monetary flow in a commerce, influencing its immediate financial capabilities.

Annuity Stream

A series of fixed payments made at equal intervals over a specified period of time.

IRR Rate

The Discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero, used to assess the profitability of investments.

Time Value Of Money

The concept that money available in the present is worth more than the same amount in the future due to its earning capacity.