Question 1

The objective and task method is probably the most often used method for establishing selling budgets.

Accepted Answer

A) True 
 B)False

Question 2

Productivity analysis and profitability analysis are highly interrelated.

Accepted Answer

A) True 
 B)False

Question 3

Using the hierarchical sales analysis, the identification of a major sales deviation in a territory would lead to an examination of the district of which it is a part.

Accepted Answer

A) True 
 B)False

Question 4

Some firms use customer satisfaction surveys to help evaluate salesforce effectiveness.

Accepted Answer

A) True 
 B)False

Question 5

In budgeting for each expense category, a sales manager should attempt to

Accepted Answer

A)  set the budget at the lowest possible level. 
B)  determine the lowest expenditure level necessary to achieve the sales quotas. 
C)  cut costs from last year's level of expenditure. 
D)  justify the highest possible level of expenditure in order to have some flexibility in the budget. 
E)  improve profitability in the short run by cutting unnecessary expenditures for training and travel. 
A)  set the budget at the lowest possible level. 
B)  determine the lowest expenditure level necessary to achieve the sales quotas. 
C)  cut costs from last year's level of expenditure. 
D)  justify the highest possible level of expenditure in order to have some flexibility in the budget. 
E)  improve profitability in the short run by cutting unnecessary expenditures for training and travel.

Question 6

Sales and cost analyses are the two most direct approaches for evaluating sales organization effectiveness.

Accepted Answer

A) True 
 B)False

Question 7

The contribution approach to income statement analysis attempts to allocate the indirect or shared costs to individual units.

Accepted Answer

A) True 
 B)False

Question 8

A benchmarking study should provide all of the following except

Accepted Answer

A)  a measure that compares performance for the benchmarked process relative to the organization studied. 
B)  identification of the organization's performance gap relative to benchmarked performance levels. 
C)  identification of best practices and facilitators that produced the results observed during the study. 
D)  performance goals for the process studied. 
E)  a set of solutions to commonly encountered performance problems. 
A)  a measure that compares performance for the benchmarked process relative to the organization studied. 
B)  identification of the organization's performance gap relative to benchmarked performance levels. 
C)  identification of best practices and facilitators that produced the results observed during the study. 
D)  performance goals for the process studied. 
E)  a set of solutions to commonly encountered performance problems.

Question 9

According to the text, which of the following is not included in the implementation and control phase of the benchmarking process?

Accepted Answer

A)  Communicate benchmark findings and gain acceptance. 
B)  Establish functional goals. 
C)  Develop action plans. 
D)  Implement specific action plans and monitor progress. 
E)  Recalibrate the benchmark. 
A)  Communicate benchmark findings and gain acceptance. 
B)  Establish functional goals. 
C)  Develop action plans. 
D)  Implement specific action plans and monitor progress. 
E)  Recalibrate the benchmark.

Question 10

The probability of identifying and correcting potential problems before they become troublesome increases with the regularity of the auditing process.

Accepted Answer

A) True 
 B)False

Question 11

Sales organization effectiveness evaluations generally result in

Accepted Answer

A)  recommendations that are tactical in nature, such as specific actions designed to improve the performance of an individual salesperson. 
B)  suggestions to cut back staff positions. 
C)  the implementation of new cost containment procedures. 
D)  general strategic or policy changes. 
E)  a complete restructuring of the organization. 
A)  recommendations that are tactical in nature, such as specific actions designed to improve the performance of an individual salesperson. 
B)  suggestions to cut back staff positions. 
C)  the implementation of new cost containment procedures. 
D)  general strategic or policy changes. 
E)  a complete restructuring of the organization.

Question 12

In this approach to profitability analysis, the indirect or shared costs are not included in the individual unit analysis:

Accepted Answer

A)  the contribution approach to income statement analysis. 
B)  the full-cost approach to residual income analysis. 
C)  return on assets managed approach. 
D)  the full-cost approach to income statement analysis. 
E)  the contribution approach to residual income analysis. 
A)  the contribution approach to income statement analysis. 
B)  the full-cost approach to residual income analysis. 
C)  return on assets managed approach. 
D)  the full-cost approach to income statement analysis. 
E)  the contribution approach to residual income analysis.

Question 13

Cost analysis is the most often-used approach for evaluating sales organization effectiveness.

Accepted Answer

A) True 
 B)False

Question 14

Activity based costing attempts to allocate shared costs to individual units based on some type of cost allocation procedure.

Accepted Answer

A) True 
 B)False

Question 15

Much of the information collected in a sales organization audit comes from various sales managers and salespeople.

Accepted Answer

A) True 
 B)False

Question 16

Which is the correct order of the steps involved in the Six Sigma process?

Accepted Answer

A)  Define, measure, analyze, improve, control 
B)  Define, analyze, measure, improve, control 
C)  Define, measure, analyze, control, improve 
D)  Define, analyze, measure, control, improve 
E)  Measure, define, analyze, improve, control 
A)  Define, measure, analyze, improve, control 
B)  Define, analyze, measure, improve, control 
C)  Define, measure, analyze, control, improve 
D)  Define, analyze, measure, control, improve 
E)  Measure, define, analyze, improve, control

Question 17

In this type of profitability analysis, the shared selling costs are allocated to individual units based on some type of cost allocation procedure:

Accepted Answer

A)  the contribution approach to income statement analysis. 
B)  the full-cost approach to residual income analysis. 
C)  return on assets managed approach. 
D)  the full-cost approach to income statement analysis. 
E)  the contribution approach to residual income analysis. 
A)  the contribution approach to income statement analysis. 
B)  the full-cost approach to residual income analysis. 
C)  return on assets managed approach. 
D)  the full-cost approach to income statement analysis. 
E)  the contribution approach to residual income analysis.

Question 18

It is possible for District 1 and District 2 to produce the same ROAM, but with one having a relatively high-profit contribution percentage, the other with a relatively high asset turnover.

Accepted Answer

A) True 
 B)False

Question 19

The assets that are typically included in the formula for calculating return on assets managed (ROAM) are

Accepted Answer

A)  accounts payable and short-term loans. 
B)  accounts receivable and notes payable. 
C)  inventory and fixed assets. 
D)  accounts payable and inventory. 
E)  inventory and accounts receivable. 
A)  accounts payable and short-term loans. 
B)  accounts receivable and notes payable. 
C)  inventory and fixed assets. 
D)  accounts payable and inventory. 
E)  inventory and accounts receivable.

Question 20

The adequacy of sales managers and management practices is assessed under this area of the sales organization audit framework:

Accepted Answer

A)  sales-management evaluation. 
B)  sales-organization strategies. 
C)  sales-organization environment. 
D)  sales-management functions. 
E)  sales-organization planning system. 
A)  sales-management evaluation. 
B)  sales-organization strategies. 
C)  sales-organization environment. 
D)  sales-management functions. 
E)  sales-organization planning system.

The objective and task method is probably the most often used method for establishing selling budgets.

Productivity analysis and profitability analysis are highly interrelated.

Using the hierarchical sales analysis, the identification of a major sales deviation in a territory would lead to an examination of the district of which it is a part.

Some firms use customer satisfaction surveys to help evaluate salesforce effectiveness.

In budgeting for each expense category, a sales manager should attempt to

Sales and cost analyses are the two most direct approaches for evaluating sales organization effectiveness.

The contribution approach to income statement analysis attempts to allocate the indirect or shared costs to individual units.

A benchmarking study should provide all of the following except

According to the text, which of the following is not included in the implementation and control phase of the benchmarking process?

The probability of identifying and correcting potential problems before they become troublesome increases with the regularity of the auditing process.

Sales organization effectiveness evaluations generally result in

In this approach to profitability analysis, the indirect or shared costs are not included in the individual unit analysis:

Cost analysis is the most often-used approach for evaluating sales organization effectiveness.

Activity based costing attempts to allocate shared costs to individual units based on some type of cost allocation procedure.

Much of the information collected in a sales organization audit comes from various sales managers and salespeople.

Which is the correct order of the steps involved in the Six Sigma process?

In this type of profitability analysis, the shared selling costs are allocated to individual units based on some type of cost allocation procedure:

It is possible for District 1 and District 2 to produce the same ROAM, but with one having a relatively high-profit contribution percentage, the other with a relatively high asset turnover.

The assets that are typically included in the formula for calculating return on assets managed (ROAM) are

The adequacy of sales managers and management practices is assessed under this area of the sales organization audit framework:

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

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Exam 8: Evaluating the Effectiveness of the Organization

The objective and task method is probably the most often used method for establishing selling budgets.

Productivity analysis and profitability analysis are highly interrelated.

Using the hierarchical sales analysis, the identification of a major sales deviation in a territory would lead to an examination of the district of which it is a part.

Some firms use customer satisfaction surveys to help evaluate salesforce effectiveness.

In budgeting for each expense category, a sales manager should attempt to

Sales and cost analyses are the two most direct approaches for evaluating sales organization effectiveness.

The contribution approach to income statement analysis attempts to allocate the indirect or shared costs to individual units.

A benchmarking study should provide all of the following except

According to the text, which of the following is not included in the implementation and control phase of the benchmarking process?

The probability of identifying and correcting potential problems before they become troublesome increases with the regularity of the auditing process.

Sales organization effectiveness evaluations generally result in

In this approach to profitability analysis, the indirect or shared costs are not included in the individual unit analysis:

Cost analysis is the most often-used approach for evaluating sales organization effectiveness.

Activity based costing attempts to allocate shared costs to individual units based on some type of cost allocation procedure.

Much of the information collected in a sales organization audit comes from various sales managers and salespeople.

Which is the correct order of the steps involved in the Six Sigma process?

In this type of profitability analysis, the shared selling costs are allocated to individual units based on some type of cost allocation procedure:

It is possible for District 1 and District 2 to produce the same ROAM, but with one having a relatively high-profit contribution percentage, the other with a relatively high asset turnover.

The assets that are typically included in the formula for calculating return on assets managed (ROAM) are

The adequacy of sales managers and management practices is assessed under this area of the sales organization audit framework:

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