A company is considering using sales revenue (selling price multiplied by sales quantity) as a performance measure
Question:
A company is considering using sales revenue (selling price multiplied by sales quantity) as a performance measure for its marketing manager. The newly hired compensation analyst suggests that it might be better to just use the sales quantity (a nonfinancial measure) instead.
Required
Write a memo discussing the advantages of each potential measure. Be sure to include factors that would lead you to prefer one measure over the other.
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The advantage of sales revenue is that it is a financial measure that is easily linked to profi...View the full answer
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