FREE Financial Management For Project Managers Performance Measurement in Accounting Questions and Answers

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Which of the following is a need for the examination of product profitability?

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Product profitability analysis requires accurate revenue and expense data. It's crucial to know a product's revenue and production, marketing, and sales costs to appropriately assess its profitability.

Businesses track EVERYTHING on a balanced scorecard, EXCEPT:

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Employee loyalty is a crucial part of human resources management, yet balanced scorecards rarely focus on it. Businesses utilize a balanced scorecard to track and measure their strategic goals and objectives across financial, customer, internal process, and learning and growth perspectives.

What can be monitored by a non-profit organization using a balanced scorecard?

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Balanced scorecards help nonprofits track contributors. The balanced scorecard helps organizations, especially non-profits, measure and manage performance across financial, customer, internal process, and learning and growth perspectives.

Some people find it difficult to comprehend how letting a client "leave" when so many organizations concentrate on customer .

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Some people struggle to understand letting a customer leave or ending a commercial relationship. Because many firms prioritize client retention—keeping existing customers satisfied, engaged, and doing business with them—this is often difficult.

The balanced scorecard is utilized because...

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The balanced scorecard helps organizations transform strategic goals and objectives into performance measures and key performance indicators (KPIs). It provides a balanced view of the organization's performance, allowing it to evaluate progress toward its goals from numerous angles.

For a product, you obtained comprehensive revenue (sales) and expense information. Data on sales for a particular store have decreased from last year. What will you do next?

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First, verify sales statistics for a store that is down from previous year. Data must be obtained and reported appropriately. Data entry, reporting, or other errors could skew results.

An established client is being sold more goods and/or services by .

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Cross-selling involves upselling existing customers. Suggesting related or complimentary items increases the customer's purchasing value. Cross-selling laptop accessories including bags, mice, and antivirus software is an example.

Following the completion of a client profitability study,

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Customer profitability analysis can provide any of the alternatives listed. Briefly review each option:

What can you say about residual income?

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Residual income is what's left after paying all bills and expenses. After meeting financial commitments, it represents funds for saving, investing, or discretionary expenditure.

A customer profitability study might be advantageous for the entire company because:

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Each answer in the question can help a company benefit from a customer profitability study. Briefly review each option:

What is one way that musicians might generate ongoing revenue?

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Option an appropriately illustrates how musicians can make residual income. When their music is downloaded, streamed, played on the radio, utilized in advertisements, movies, or TV shows, or otherwise circulated, musicians receive royalties. After recording and managing rights, the artist can earn money from their music without having to generate new content.

All of the following organizations MAY use the balanced scorecard, EXCEPT:

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Businesses, governments, and non-profits use the balanced scorecard to monitor and manage performance strategically. It helps these firms turn strategic goals into financial, customer, internal process, and learning and growth objectives and KPIs.

The category of scale that takes into account rating employee performance on a continuum basis is

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Graphic rating scales evaluate employee performance on a continuum or scale. The scale lets the evaluator mark a point on a scale, such as a numerical rating or descriptive descriptors, for each criterion while grading employees.

What equation is used to determine the first kind of residual income?

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The first residual income calculation subtracts monthly debts from net income. This residual income takes into account the amount left over after monthly bills and expenses are deducted from net revenue.

How does the creation of wealth relate to residual income?

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Wealth is created by residual income. It refers to ongoing income. Residual income is earned even when a person is not working, unlike salary or hourly wages.

You complete a product profitability analysis and find that one store has a margin of about 25%. The intended average for the business is 18%. What are your options given this information?

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Yes you are correct, Offer a discount to the retailer

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