The weakness in using the formula: sales = days worked x calls/days worked x orders/call x sales/orders is it:
A)Is too easily calculated.
B)Is too difficult to calculate.
C)It emphasizes sales.
D)It ignores costs.

Question

Quizplus · Accepted Answer

The weakness in this formula is that it only focuses on sales and ignores costs. It does not take into account the expenses associated with making those sales, such as marketing expenditures or labor costs. This can lead to an inaccurate representation of profitability and may cause a company to make decisions that are not financially sound.

The Weakness in Using the Formula: Sales = Days Worked