Final answer:
Without periodic assessment of profit, a business user cannot effectively manage inventory, evaluate employee performance, make investment decisions, or plan for future growth.
Step-by-step explanation:
Without periodic assessment of profit, a business user cannot effectively manage inventory. By regularly evaluating profit, a business can determine which products are selling well and which are not, allowing them to adjust their inventory accordingly. For example, if a product is not generating enough profit, the business may choose to reduce the quantity of that product in their inventory or discontinue it altogether, freeing up space and resources for more profitable items.
Evaluate employee performance: While profit assessment can indirectly affect employee performance, it is not the primary factor in evaluating individual employee performance. Other performance metrics such as sales targets, customer feedback, and task completion are typically used to evaluate employee performance.
Make investment decisions: While profit assessment can provide valuable insights into a business's financial health, other factors such as market trends, industry analysis, and return on investment calculations are typically considered when making investment decisions.
Plan for future growth: Profit assessment is an important aspect of planning for future growth, as it helps identify areas of the business that are generating the most profit and areas that may need improvement. However, it is not the sole determinant of future growth plans, as other factors such as market demand, competitive landscape, and industry trends also play a crucial role in growth planning.