A sales manager is trying to determine why the company's sales are down compared to a year ago. He starts with sales data summaries but quickly decides to break down sales further by territory, then salesperson, then store, and finally product. His actions suggest the:
A) Contribution-margin approach.
B) Marketing audit.
C) Gross profit approach.
D) Iceberg principle.
E) Full-cost approach.

Question

Quizplus · Accepted Answer

The sales manager's approach of breaking down the sales data into more detailed components to understand the underlying issues mirrors the Iceberg Principle. This principle suggests that the most visible problems (like the tip of an iceberg) are often supported by much larger, less visible issues. By dissecting the sales data into more granular levels, the manager is attempting to uncover these deeper, underlying causes of the sales decline.

A Sales Manager Is Trying to Determine Why the Company's