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.

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price during a specified time period.

Price

The price expected, requisite, or delivered in remuneration for an object or service.

Market Price

The contemporary valuation at which a commodity or service can be acquired or disposed of in a commercial environment.

Equilibrium Market Price

The cost level where the amount of products offered matches the amount of products sought after in a marketplace.