Asked by Brooke Urena on May 10, 2024
Verified
Which of these is a calculation that determines the difference in revenue of a retailer's existing supplies over a certain period of time,usually quarterly,compared to the identical period of time,in a prior year?
A) Asset intensity
B) Risk-return tradeoff
C) Same-store sales
D) Capital investment analysis
Same-Store Sales
A retail industry metric comparing the revenue earned from established stores in a certain period to the revenue during a similar period in the past.
Asset Intensity
Amount of assets needed to generate a given level of sales.
Risk-Return Tradeoff
The principle that potential return on investment increases with the degree of risk.
- Comprehend the significance of financial analysis tools such as capital investment analysis in decision-making processes.
Verified Answer
IA
Izzah AthirahMay 17, 2024
Final Answer :
C
Explanation :
Same-store sales, also known as comparable-store sales, is the correct answer because it specifically refers to the revenue difference of a retailer's existing stores or sales channels over a certain period, compared to the same period in a previous year. This metric is used to evaluate the performance of a retailer's established locations, excluding the impact of opening new stores.
Learning Objectives
- Comprehend the significance of financial analysis tools such as capital investment analysis in decision-making processes.