Asked by dorian hawthorne on May 08, 2024

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Carolina, the accountant for Duke Manufacturing, tells Jacob, who works in customer service for Duke, that that their company's customer satisfaction rating predicts sales revenue in dollars. Carolina's comment indicates that sales revenue is

A) a leading indicator
B) a lagging indicator
C) both a leading and a lagging indicator
D) a nonfinancial metric

Customer Satisfaction Rating

A measure used by businesses to evaluate the degree to which their products or services meet or surpass customer expectations.

Leading Indicator

A predictive metric that signals future economic direction, often used to anticipate changes in economic cycles.

Sales Revenue

The income received by a company from its sales of goods or the provision of services, before any costs or expenses are deducted.

  • Pinpoint principal and auxiliary indicators in the measurement of performance.
  • Understand the role of nonfinancial and financial metrics in performance measurement.
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Nathaniel ArndtMay 13, 2024
Final Answer :
B
Explanation :
Sales revenue is a lagging indicator because it reflects past actions, such as customer satisfaction, rather than predicting future performance.