Question

Among the responsibility centres listed, which type of responsibility centre is most likely to use "Growth in Sales" as a performance measure

Answer 1

Answer:

C. Revenue

Explanation:

Growth in sales is an important metric in determining revenue for an organization. It is the ability of an organization or a team within the organization to increase its revenue over a period of time. Most business managers measure the revenue generated through the growth in sales. To achieve growth in sales, sales teams would need to set monthly, quarterly, and yearly targets for themselves.

An increase in sales growth, which is directly proportional to an increase in revenue, assures the stakeholders in a business that there is progress and that the organization is thriving.