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Which of the following provide meaningful comparisons for revenue analysis for the person receiving the information?
1. Restaurant takings on Friday night compared to Monday night reported to the owner
2. Monthly sales revenue figures compared to the flexed budget reported to the sales director
3. Quarterly sales compared to those of the same quarter in the previous year reported to the sales directorA. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. All threeHow can first statement be a meaningful comparison as it is normal that people go on weekend nights for family dinners or any functions in many countries.
Monday is a working day, whereas friday would have more sales.Question 2:
Which of the following is NOT an example of feedback control?A. Responding to a price increase by a supplier by sourcing an alternative product
B. Responding to an anticipated fall in sales volume by producing fewer units of a product
C. Responding to a higher than expected factory rejection rate by correcting faulty factory processes
D. Responding to better than expected monthly revenue by flexing the future revenue forecast
Answer is B.
Sir why D is wrong?It depends on what’s meant by ‘meaningful and that depends on part on what you are trying to do with the figures. Therefore the question is woolly.
You could argue that seeing different sales Mon and Fri on a regular basis would help you to decide how many staff to have working that night.
Feedback occurs after an activity or process is completed. It is reactive. For example, feedback control would involve evaluating 9progress by comparing the production standard to the actual production output. If the standard or goal is met, production continues. If not, adjustments can be made to the process or to the standard.
D is an example of changing the target/standard in the light of what’s happened, so it is feedback.
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