The Main Purpose of a Performance Analysis Is To

question 32

Multiple Choice

The main purpose of a performance analysis is to:

• A) see whether or not the 80/20 rule applies in a particular situation.
• B) uncover variations in performance that may be hidden in summary information.
• C) determine who should receive a performance bonus when profit is greater than expected.
• D) determine if the marketing budget is large enough to achieve the expected sales performance.
• E) provide a detailed breakdown of a company's sales records.

Understand the use of multiple explanatory variables in logistic regression.

Recognize the significance of variables in a logistic regression model.

Calculate odds from given proportions.

Interpret software output related to logistic regression.

---

Definitions:

Factoring Receivables

A financial transaction where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.

Allowance for Doubtful Accounts

A contra asset account on a company’s balance sheet that represents the amount of receivables it does not expect to collect.

Credit Sales

Sales transactions where the customer is allowed to pay at a later date, typically generating accounts receivable.

Bad Debt Expense

Represents the expense associated with accounts receivable that a company does not expect to collect.