Question 1

What is the key sales management budgeting task?

Accepted Answer

A)  To develop sales forecasts that will provide the expected level of sales for the next planning period. 
B)  To translate the sales forecasts into sales quotas for each territory, district, etc. 
C)  To determine the amount of selling budget necessary to support the sales function. 
D)  To determine the best way to allocate sales resources throughout the sales organization and across the different selling activities. 
E)  To instill a sales consciousness throughout the sales organization. 
A)  To develop sales forecasts that will provide the expected level of sales for the next planning period. 
B)  To translate the sales forecasts into sales quotas for each territory, district, etc. 
C)  To determine the amount of selling budget necessary to support the sales function. 
D)  To determine the best way to allocate sales resources throughout the sales organization and across the different selling activities. 
E)  To instill a sales consciousness throughout the sales organization.

Question 2

Profitability analysis takes a financial perspective, while productivity analysis is more managerial oriented.

Accepted Answer

A) True 
 B)False

Question 3

____________ is a data-driven methodology that attempts to eliminate defects in any process.

Accepted Answer

A)  Activity-based costing 
B)  Benchmarking. 
C)  Six Sigma 
D)  Productivity analysis 
E)  Sales analysis 
A)  Activity-based costing 
B)  Benchmarking. 
C)  Six Sigma 
D)  Productivity analysis 
E)  Sales analysis

Question 4

District 1 has a poor level of ROAM. However, their profit contribution percentage is acceptable, but they have a very low asset turnover ratio. What might cause this?

Accepted Answer

A)  Selling too many low-margin products 
B)  Problems with accounts payable 
C)  Negotiating low selling prices 
D)  Problems with accounts receivable 
E)  Excessive selling expenses 
A)  Selling too many low-margin products 
B)  Problems with accounts payable 
C)  Negotiating low selling prices 
D)  Problems with accounts receivable 
E)  Excessive selling expenses

Question 5

In sales analysis, the emphasis is on assessing the costs incurred by the sales organization to generate the achieved levels of sales.

Accepted Answer

A) True 
 B)False

Question 6

Please calculate the profit contribution as a percentage of sales to be used in the ROAM calculation, if sales = $20,000,000; accounts receivable = $8,000,000; and profit contribution = $5,000,000:

Accepted Answer

A)  20 percent. 
B)  40 percent. 
C)  50 percent. 
D)  5 percent. 
E)  25 percent. 
A)  20 percent. 
B)  40 percent. 
C)  50 percent. 
D)  5 percent. 
E)  25 percent.

Question 7

The sales organization audit is the most comprehensive approach for evaluating sales organization effectiveness.

Accepted Answer

A) True 
 B)False

Question 8

The full-cost approach to income statement analysis includes only direct costs in the profitability analysis.

Accepted Answer

A) True 
 B)False

Question 9

Benchmarking is an ongoing measurement and analysis process that compares an organization's current operating practices with the "best practices" used by world-class organizations.

Accepted Answer

A) True 
 B)False

Question 10

In productivity analysis, direct comparisons across the entire sales organization are possible because all of the ratios are expressed in terms of the same units.

Accepted Answer

A) True 
 B)False

Question 11

A __________ represents an expected level of firm sales for defined products, markets, and time periods and for a specified strategy.

Accepted Answer

A)  sales forecast 
B)  sales quota 
C)  market forecast 
D)  industry forecast 
E)  sales budget 
A)  sales forecast 
B)  sales quota 
C)  market forecast 
D)  industry forecast 
E)  sales budget

Question 12

The basic concept underlying the use of this analytical method is that costs are allocated to individual units on the basis of how the units actually expend or cause these costs.

Accepted Answer

A)  activity-based costing 
B)  cost analysis 
C)  profitability analysis 
D)  hierarchical sales analysis 
E)  productivity analysis 
A)  activity-based costing 
B)  cost analysis 
C)  profitability analysis 
D)  hierarchical sales analysis 
E)  productivity analysis

Question 13

Which of the following would not be an expense category for a selling budget?

Accepted Answer

A)  Recruiting expenses 
B)  Salespeople's lodging expenses 
C)  Production expense 
D)  Salespeople's salaries 
E)  Sales office expense 
A)  Recruiting expenses 
B)  Salespeople's lodging expenses 
C)  Production expense 
D)  Salespeople's salaries 
E)  Sales office expense

Question 14

There is no one summary measure of sales organization effectiveness.

Accepted Answer

A) True 
 B)False

Question 15

The sales organization audit should be performed just when problems are evident.

Accepted Answer

A) True 
 B)False

Question 16

A more centralized sales organization will place budget responsibility

Accepted Answer

A)  with the sales manager. 
B)  with the salesperson. 
C)  at lower sales management levels. 
D)  at higher sales management levels. 
E)  with the accounting personnel. 
A)  with the sales manager. 
B)  with the salesperson. 
C)  at lower sales management levels. 
D)  at higher sales management levels. 
E)  with the accounting personnel.

Question 17

ROAM is determined by both profit contribution percentage and asset turnover.

Accepted Answer

A) True 
 B)False

Question 18

A sales analysis might be conducted by type of distribution method.

Accepted Answer

A) True 
 B)False

Question 19

The most common type of sales organization assessment focuses on

Accepted Answer

A)  cost analysis. 
B)  profitability analysis. 
C)  productivity analysis. 
D)  sales analysis. 
E)  market-share analysis. 
A)  cost analysis. 
B)  profitability analysis. 
C)  productivity analysis. 
D)  sales analysis. 
E)  market-share analysis.

Question 20

One of the major difficulties in developing the income statement approach in profitability analysis is

Accepted Answer

A)  determining how to handle costs that are shared between organizational levels or sales types. 
B)  determining the cost of goods sold for individual organizational levels or sales types. 
C)  breaking down total sales into individual unit sales. 
D)  explaining how to interpret the results to senior managers. 
E)  figuring the investment in assets required to generate the net profit or profit contribution. 
A)  determining how to handle costs that are shared between organizational levels or sales types. 
B)  determining the cost of goods sold for individual organizational levels or sales types. 
C)  breaking down total sales into individual unit sales. 
D)  explaining how to interpret the results to senior managers. 
E)  figuring the investment in assets required to generate the net profit or profit contribution.

What is the key sales management budgeting task?

Profitability analysis takes a financial perspective, while productivity analysis is more managerial oriented.

____________ is a data-driven methodology that attempts to eliminate defects in any process.

District 1 has a poor level of ROAM. However, their profit contribution percentage is acceptable, but they have a very low asset turnover ratio. What might cause this?

In sales analysis, the emphasis is on assessing the costs incurred by the sales organization to generate the achieved levels of sales.

Please calculate the profit contribution as a percentage of sales to be used in the ROAM calculation, if sales = $20,000,000; accounts receivable = $8,000,000; and profit contribution = $5,000,000:

The sales organization audit is the most comprehensive approach for evaluating sales organization effectiveness.

The full-cost approach to income statement analysis includes only direct costs in the profitability analysis.

Benchmarking is an ongoing measurement and analysis process that compares an organization's current operating practices with the "best practices" used by world-class organizations.

In productivity analysis, direct comparisons across the entire sales organization are possible because all of the ratios are expressed in terms of the same units.

A __________ represents an expected level of firm sales for defined products, markets, and time periods and for a specified strategy.

The basic concept underlying the use of this analytical method is that costs are allocated to individual units on the basis of how the units actually expend or cause these costs.

Which of the following would not be an expense category for a selling budget?

There is no one summary measure of sales organization effectiveness.

The sales organization audit should be performed just when problems are evident.

A more centralized sales organization will place budget responsibility

ROAM is determined by both profit contribution percentage and asset turnover.

A sales analysis might be conducted by type of distribution method.

The most common type of sales organization assessment focuses on

One of the major difficulties in developing the income statement approach in profitability analysis is

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

What is the key sales management budgeting task?

Profitability analysis takes a financial perspective, while productivity analysis is more managerial oriented.

____________ is a data-driven methodology that attempts to eliminate defects in any process.

District 1 has a poor level of ROAM. However, their profit contribution percentage is acceptable, but they have a very low asset turnover ratio. What might cause this?

In sales analysis, the emphasis is on assessing the costs incurred by the sales organization to generate the achieved levels of sales.

Please calculate the profit contribution as a percentage of sales to be used in the ROAM calculation, if sales = $20,000,000; accounts receivable = $8,000,000; and profit contribution = $5,000,000:

The sales organization audit is the most comprehensive approach for evaluating sales organization effectiveness.

The full-cost approach to income statement analysis includes only direct costs in the profitability analysis.

Benchmarking is an ongoing measurement and analysis process that compares an organization's current operating practices with the "best practices" used by world-class organizations.

In productivity analysis, direct comparisons across the entire sales organization are possible because all of the ratios are expressed in terms of the same units.

A __________ represents an expected level of firm sales for defined products, markets, and time periods and for a specified strategy.

The basic concept underlying the use of this analytical method is that costs are allocated to individual units on the basis of how the units actually expend or cause these costs.

Which of the following would not be an expense category for a selling budget?

There is no one summary measure of sales organization effectiveness.

The sales organization audit should be performed just when problems are evident.

A more centralized sales organization will place budget responsibility

ROAM is determined by both profit contribution percentage and asset turnover.

A sales analysis might be conducted by type of distribution method.

The most common type of sales organization assessment focuses on

One of the major difficulties in developing the income statement approach in profitability analysis is

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