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Question 70 - C_TS4CO_2023 discussion

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What are some of the objectives of Profitability Analysis?

Note: There are 2 correct answers to this question.

A.

Provide the company with information on the performance of its market segments.

Answers
A.

Provide the company with information on the performance of its market segments.

B.

Provide the company with a detailed view of its financial statements by areas of responsibilities.

Answers
B.

Provide the company with a detailed view of its financial statements by areas of responsibilities.

C.

Allow the company to determine if the sales force achieved their contribution margin goals.

Answers
C.

Allow the company to determine if the sales force achieved their contribution margin goals.

D.

Allow the company to determine standard costs and revenues according to the period accounting method.

Answers
D.

Allow the company to determine standard costs and revenues according to the period accounting method.

Suggested answer: A, C

Explanation:

Profitability Analysis (CO-PA) aims to assess the performance of market segments (option A) and monitor whether sales teams meet their margin targets (option C). This provides valuable insights into product and market profitability for strategic decision-making.

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asked 19/11/2024
Jacobo Montes
28 questions
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