Question 23 of 25 Which of the following relate to the quality and stability of revenues? |. Diversification of geographic markets Il. Product concentration Ill, Dependence on a single industry IV. Allocation methods used V. Customer concentration Oo 1mm O 1,1, 1LVv O 1,iv O 11, iLWwvQuestion #200205 Incorrect The allocation methods used relate to the matching of expenses to revenues produced and have an effect on profits, not revenues. Important items to consider ‘when analyzing the quality and stability of revenues are as follows: * Diversification of geographic markets + Product concentration + Dependence on a single indu + Customer concentration + Dependence on a few expert salesmen + The sensitivity of demand for products sold to general business clients + The ability of the company to anticipate customer needs by supplying needed products or product variations. Allocation Expense Revenues