Deck 9: Step 6: The Approval and Monitoring Process

Question 1

Return on equity is a way to calculate margin.

Answer 1

False

Question 2

Margin equals net income/sales.

Answer 2

True

Question 3

If two services have the same return on equity they will have the same return on sales.

Answer 3

False

Question 4

If two services have the same sales each year, and the same return on equity percentage, they will have the same net income.

Question 5

Looking at a sales team performance, a sales ratio is calculated by number of sales divided by number of sales calls.

Question 6

In not for profit organizations, it is illegal to compensate sales persons based on revenue generated.

Question 7

A key element of the balanced scorecard is learning.

Question 8

Stating a margin target would be unusual in a balanced scorecard.

Question 9

The only fair way to compare competing market plans is on evaluation of net income.

Question 10

Explain how an organization could evaluate among alternative plans to see what plan(s) might be approved. What criteria would be used?

Question 11

Discuss a situation where sales can be large while margins might be low. Under what circumstances might this exist. Provide an example.