Question
For each of the6 following, identify if each statement BEST applies to a manufacturing firm (M) , service firm (S) , recurring revenue firm (R)
For each of the6 following, identify if each statement BEST applies to a manufacturing firm (M), service firm (S), recurring revenue firm (R), or commission-based firm (C)
A. Most likely to have a large amount of fixed expenses [A]
B. Revenue forecasting requires the establishment of a base [B]
C. Revenue growth is more difficult due to the need to find qualified employees [C]
D. Capacity is limited by the number of employees and the number of working hours in a year [D]
E. Upfront costs are likely to be high but will decrease afterward [E]
F. Likely to have materials as its largest expense [F]
G. Revenue growth is closely linked to the number of units sold by employees [G]
H. Likely to have labor expenses as the largest expense [H]
I. The disconnect rate should be considered when forecasting revenue [I]
J. Acquiring new customers will generate high expenses initially [J]
K. Utilization rate must be considered when forecasting revenue [K]
L. Revenue growth may be limited by physical capacity [L]
M.Retaining customers should result in large revenue growth [M]
N.Expenses will be closely linked to the base that is expected of employees [N]
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