When evaluating performance based on a revenue budget approach, on what would you advise managers to focus?
A)whether the organization sells more product than other organizations
B)the organization's efficiency in generating sales
C)how well the organization generates earnings from goods and services sold
D)how much profit the organization can make with a fixed cost structure
E)whether the organization manages inventory well relative to sales

Question

Quizplus · Accepted Answer

Managers should focus on how well the organization generates earnings from goods and services sold, as this directly relates to evaluating performance based on a revenue budget approach.

When Evaluating Performance Based on a Revenue Budget Approach, on What