In a short essay, explain why what managers choose to measure can be more important than how they measure in the control process
Indicate whether the statement is true or false.
Answer: A premium coffee bean company, for example, may choose to measure total sales in a given geographical region as a reflection of how well the company is doing. This company might see rising sales of its product as a sign that it is highly successful in this geographical region.
However, the sales totals may not tell the whole story. If premium coffee in the geographical area is a rapidly expanding market, the sales of all premium coffees would be expected to be rising. It is possible that the company is actually losing market share to a competitor even as its total sales rise impressively.
Thus, in this case, deciding what to measure–market share as opposed to total sales–may make a huge difference in how the company evaluates its performance. If it measures total sales, it sees its performance as good. If it measures market share, it may see its performance as worrisome.
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The financial statements of Harbor Furniture Company include the following items
2017 2016 Cash $43,500 $42,000 Short-term Investments 27,000 12,500 Net Accounts Receivable 93,000 100,000 Merchandise Inventory 162,000 149,000 Total Assets 533,000 547,000 Total Current Liabilities 304,000 293,000 Long-term Note Payable 62,000 59,000 What is 2017 acid-test ratio? (Round your answer to two decimal places.) A) 0.23 B) 1.07 C) 1.86 D) 0.54
Table FLIGHT is:
A) Not in 1NF B) In 1NF but not in 2NF C) In 2NF but not in 3NF D) In 3NF