Question 1

Which of the following are types of profitability analysis?

Accepted Answer

A)  income statement analysis 
B)  activity-based costing 
C)  return on assets managed analysis 
D)  all three of the above 
E)  none of the above 
A)  income statement analysis 
B)  activity-based costing 
C)  return on assets managed analysis 
D)  all three of the above 
E)  none of the above D

Question 2

According to the text, which of the following is one of the methods used most often to measure salesforce effectiveness?

Accepted Answer

A)  return on investment of sales resources 
B)  sales results versus goal 
C)  sales employee feedback 
D)  cost of sales 
E)  market share 
A)  return on investment of sales resources 
B)  sales results versus goal 
C)  sales employee feedback 
D)  cost of sales 
E)  market share B

Question 3

Productivity and profitability analyses are the two most direct approaches for evaluating sales organization effectiveness.

Accepted Answer

A) True 
 B)False  False

Question 4

Last year sales were 16,400,000 and compensation costs were 1,312,000. Compensation costs for the year were budgeted at 7% of sales. It appears that compensation costs were

Accepted Answer

A)  greater than budgeted. 
B)  less than budgeted. 
C)  exactly as budgeted. 
D)  there is not enough information to tell. 
A)  greater than budgeted. 
B)  less than budgeted. 
C)  exactly as budgeted. 
D)  there is not enough information to tell.

Question 5

The most useful input unit for productivity analysis is the

Accepted Answer

A)  product. 
B)  salesperson. 
C)  manufacturing worker. 
D)  sales manager. 
E)  sales call. 
A)  product. 
B)  salesperson. 
C)  manufacturing worker. 
D)  sales manager. 
E)  sales call.

Question 6

Though two approaches to income statement analysis have been used, there seems to be a trend toward

Accepted Answer

A)  the full-cost approach. 
B)  the cost-allocation approach. 
C)  the contribution approach. 
D)  the gross-margin approach. 
E)  the indirect-cost approach. 
A)  the full-cost approach. 
B)  the cost-allocation approach. 
C)  the contribution approach. 
D)  the gross-margin approach. 
E)  the indirect-cost approach.

Question 7

Separate sales analyses need to be performed for the different levels in the sales organization.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not considered a key to successful benchmarking?

Accepted Answer

A)  Clearly identify critical activities that will improve quality or service or reduce cost. 
B)  Properly prepare and benchmark only one activity at a time. 
C)  Provide adequate resources--financial and personnel. 
D)  Make sure that you clearly understand the processes of your benchmarking partner company first. 
E)  Verify that your benchmarking partner company is the best in its class. 
A)  Clearly identify critical activities that will improve quality or service or reduce cost. 
B)  Properly prepare and benchmark only one activity at a time. 
C)  Provide adequate resources--financial and personnel. 
D)  Make sure that you clearly understand the processes of your benchmarking partner company first. 
E)  Verify that your benchmarking partner company is the best in its class.

Question 9

Only outsiders should be involved in a sales organization audit.

Accepted Answer

A) True 
 B)False

Question 10

A sales analysis might be conducted by order size.

Accepted Answer

A) True 
 B)False

Question 11

An evaluation of sales results throughout the sales organization from a top-down perspective is a

Accepted Answer

A)  hierarchical sales analysis. 
B)  scaled sales analysis. 
C)  stepladder sales analysis. 
D)  pyramid sales analysis. 
E)  single stage sales analysis. 
A)  hierarchical sales analysis. 
B)  scaled sales analysis. 
C)  stepladder sales analysis. 
D)  pyramid sales analysis. 
E)  single stage sales analysis.

Question 12

The sales growth experienced by different organizational levels can be determined by

Accepted Answer

A)  a comparison of actual sales results to those achieved by competitors. 
B)  a comparison of actual sales results to sales forecasts. 
C)  a comparison of actual sales results to sales quotas. 
D)  a comparison of actual sales results to previous periods' sales. 
E)  a comparison of the sales effectiveness index of the different organization levels. 
A)  a comparison of actual sales results to those achieved by competitors. 
B)  a comparison of actual sales results to sales forecasts. 
C)  a comparison of actual sales results to sales quotas. 
D)  a comparison of actual sales results to previous periods' sales. 
E)  a comparison of the sales effectiveness index of the different organization levels.

Question 13

In corporate budgeting, the allocation of promotional resources to advertising represents the total selling budget.

Accepted Answer

A) True 
 B)False

Question 14

The value of comparing actual expenses with budgeted expenses depends on the accuracy of the expense information provided by salespeople.

Accepted Answer

A) True 
 B)False

Question 15

Sales organization effectiveness and salesperson performance are essentially the same.

Accepted Answer

A) True 
 B)False

Question 16

The general approach in sales organization cost analysis is to compare the costs incurred versus planned costs as defined by selling budgets.

Accepted Answer

A) True 
 B)False

Question 17

All of the following are characteristics of benchmarking except

Accepted Answer

A)  It is an ongoing measurement and analysis process. 
B)  It involves comparing an organization's current operating practices to average industry operating practices. 
C)  It can lead to greater customer satisfaction. 
D)  It may lead to lower operating costs. 
E)  It may lead to improved operations. 
A)  It is an ongoing measurement and analysis process. 
B)  It involves comparing an organization's current operating practices to average industry operating practices. 
C)  It can lead to greater customer satisfaction. 
D)  It may lead to lower operating costs. 
E)  It may lead to improved operations.

Question 18

A sales forecast provides a basis for establishing specific sales quotas.

Accepted Answer

A) True 
 B)False

Question 19

A sales analysis might be conducted by product type.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following actions would improve future ROAM performance?

Accepted Answer

A)  Increasing selling expenses 
B)  Reducing inventory levels 
C)  Increasing accounts receivable 
D)  Reducing total sales 
E)  Reducing short-term notes 
A)  Increasing selling expenses 
B)  Reducing inventory levels 
C)  Increasing accounts receivable 
D)  Reducing total sales 
E)  Reducing short-term notes

Which of the following are types of profitability analysis?

According to the text, which of the following is one of the methods used most often to measure salesforce effectiveness?

Productivity and profitability analyses are the two most direct approaches for evaluating sales organization effectiveness.

Last year sales were 16,400,000 and compensation costs were 1,312,000. Compensation costs for the year were budgeted at 7% of sales. It appears that compensation costs were

The most useful input unit for productivity analysis is the

Though two approaches to income statement analysis have been used, there seems to be a trend toward

Separate sales analyses need to be performed for the different levels in the sales organization.

Which of the following is not considered a key to successful benchmarking?

Only outsiders should be involved in a sales organization audit.

A sales analysis might be conducted by order size.

An evaluation of sales results throughout the sales organization from a top-down perspective is a

The sales growth experienced by different organizational levels can be determined by

In corporate budgeting, the allocation of promotional resources to advertising represents the total selling budget.

The value of comparing actual expenses with budgeted expenses depends on the accuracy of the expense information provided by salespeople.

Sales organization effectiveness and salesperson performance are essentially the same.

The general approach in sales organization cost analysis is to compare the costs incurred versus planned costs as defined by selling budgets.

All of the following are characteristics of benchmarking except

A sales forecast provides a basis for establishing specific sales quotas.

A sales analysis might be conducted by product type.

Which of the following actions would improve future ROAM performance?

Overview of Personal Selling

Organizational Strategies and the Sales Function

Sales Organization Structure and Salesforce Deployment

Acquiring Sales Talent: Recruitment and Selection

Continual Development of the Salesforce:

Sales Leadership, Management, and Supervision

Motivation and Reward System Management

Evaluating the Performance of Salespeople

Developing Forecasts

Filters

Exam 8: Evaluating the Effectiveness of the Organization

Which of the following are types of profitability analysis?

According to the text, which of the following is one of the methods used most often to measure salesforce effectiveness?

Productivity and profitability analyses are the two most direct approaches for evaluating sales organization effectiveness.

Last year sales were 16,400,000 and compensation costs were 1,312,000. Compensation costs for the year were budgeted at 7% of sales. It appears that compensation costs were

The most useful input unit for productivity analysis is the

Though two approaches to income statement analysis have been used, there seems to be a trend toward

Separate sales analyses need to be performed for the different levels in the sales organization.

Which of the following is not considered a key to successful benchmarking?

Only outsiders should be involved in a sales organization audit.

A sales analysis might be conducted by order size.

An evaluation of sales results throughout the sales organization from a top-down perspective is a

The sales growth experienced by different organizational levels can be determined by

In corporate budgeting, the allocation of promotional resources to advertising represents the total selling budget.

The value of comparing actual expenses with budgeted expenses depends on the accuracy of the expense information provided by salespeople.

Sales organization effectiveness and salesperson performance are essentially the same.

The general approach in sales organization cost analysis is to compare the costs incurred versus planned costs as defined by selling budgets.

All of the following are characteristics of benchmarking except

A sales forecast provides a basis for establishing specific sales quotas.

A sales analysis might be conducted by product type.

Which of the following actions would improve future ROAM performance?

Overview of Personal Selling

Organizational Strategies and the Sales Function

Sales Organization Structure and Salesforce Deployment

Acquiring Sales Talent: Recruitment and Selection

Continual Development of the Salesforce:

Sales Leadership, Management, and Supervision

Motivation and Reward System Management

Evaluating the Performance of Salespeople

Developing Forecasts

Filters