Final answer:
Sales Analysis utilizes revenue figures to determine the performance of a firm's marketing strategy. It evaluates sales volume and revenue to ascertain market strategies' success, in contrast to Marketing Cost Analysis, which looks at marketing expenses, and Performance Standards that serve as benchmarks for efficiency. The correct option is B.
Step-by-step explanation:
The correct option that uses revenue figures to evaluate a firm's marketing strategy performance is A. Sales Analysis. Sales analysis involves assessing the sales figures of a company to determine the success of its marketing strategies. It looks at various factors such as the volume of sales, revenue generated, and market share amongst others.
To evaluate performance. Marketing Cost Analysis would focus more on the costs associated with marketing efforts, while a Performance Standard is a benchmark used to measure the efficiency or effectiveness of the marketing strategy.
For any firm aiming to maximize profits, analyzing sales and revenue is vital. Sales analysis uses total sales revenue to determine the impact of business activities on the financial success of the firm. This metric is significant when compared to total costs, which can be broken down into fixed and variable costs to get a more detailed view of expenses.
Understanding the relationship between sales, costs, and profits is essential for decision-making about the quantity to produce and pricing to maximize profitability. The analysis of the firm's cost structure also plays an integral role in long-run production decisions. The correct option is B.