Exam 8: Evaluating the Effectiveness of the Organization

Productivity is typically measured in terms of ratios between outputs and inputs.

The hierarchical approach to sales analysis provides an efficient way to conduct a sales analysis and identify major areas of sales problems.

The first step in the benchmarking process is to gather data.

One of the keys to successful benchmarking is to be sure to properly prepare and benchmark at least two activities at a time.

Which of the following statements regarding the objective and task method of determining expenditure levels for selling expense categories is true?

When assessing the sales organization, the success of the sales organization must be differentiated from the success of individual salespeople.

Large variations between budgeted selling costs and actual selling costs generally indicate that the salesperson is not meeting his/her sales quota.

A sales organization audit might ask a question such as "How is our sales training program developed?"

A definition for sales organization effectiveness would be

Sales managers at each level need sales analyses at their level and the next level above for evaluation and control purposes.

Salesperson performance contributes to but does not completely determine sales organization effectiveness.

A benchmarking study should identify the organization's performance gap relative to benchmarked performance levels.

The two most direct approaches for evaluating sales organization effectiveness are

A sales organization audit can best be defined as

Evaluations of salesperson performance are confined to the individuals.

Benchmarking is an ongoing measurement and analysis process that compares an organization's current operating practices with average industry operating practices.

Which of the following is not one of the four major areas covered by the sales organization audit framework?

Which of the following statements regarding the sales organization audit is false?

Sales results in excess of the sales quota will have index values less than 100, while results lower than quota will have index values greater than 100.

The ___________ method calculates an expenditure level for each category by multiplying an expenditure percentage times forecasted sales.