Practise interpreting statements of comprehensive income to identify profit features and explain how income data supports business decisions.
Rabanne aims to be the best provider of fragrances for men and women throughout the world. Therefore, it uses a range of methods to make sure it will achieve this aim.
Explain one reason why businesses use statements of comprehensive income when making decisions.
A01-3 marks
Award 1 mark for identification of one reason why businesses use statements of comprehensive income when making decisions, plus 2 further marks for explaining the importance, for a maximum of 3 marks.
- A business can see how the business is performing (1) and can calculate the profit margin (1) along with other calculations if the performance has deteriorated (1)
- Businesses can use it to compare itself to similar businesses (1) which will enable them to judge its performance against competitors (1) giving an indication of how well the business is doing (1)
NB No marks are awarded for a definition.
Answers that list three reasons with no explanation will get 1 mark only.
Accept any appropriate response.
(3)