Consider the following statements about the standards used in functional areas to gauge performance:
(A) Individual job performance is a standard used in the production area.
(B) Individual sales-person’s performance is a standard used in the marketing area.
(C) Flow of capital is a standard used in the marketing area.
(D) Sales expense is a standard used in the finance and accounting area.
Which of the statements given above are correct?
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A) and (B) only
(A) Individual job performance is a standard used in the production area. — Correct. Individual job performance is listed with quantity, quality and cost as a production standard.
(B) Individual sales-person’s performance is a standard used in the marketing area. — Correct. Individual sales-person’s performance is a marketing standard, along with sales volume and sales expense.
(C) Flow of capital is a standard used in the marketing area. — Incorrect. Flow of capital deals with money, so it is a finance and accounting standard.
(D) Sales expense is a standard used in the finance and accounting area. — Incorrect. Sales expense is the cost of selling, so it is a marketing standard.
NCERT (2026-27 Edition):
|
