A Company Uses Sales Representatives for Selling the Company's More

question 125

Multiple Choice

A company uses sales representatives for selling the company's more complex and customized products to large accounts, while using inside salespeople and Web ordering for low-end selling. Which of the following describes the company's sales force best?

• A) demand creators
• B) direct marketing force
• C) missionary sellers
• D) technical salesforce
• E) leveraged salesforce

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Definitions:

Fixed Costs

Rent, salaries, and insurance are examples of expenses unaffected by changes in production or sales levels.

Variable Costs

Expenditures that fluctuate in accordance with the amount of products made or sold.

Inventoriable Costs

Expenses directly connected to the production of goods that are initially recorded as inventory and expensed as cost of goods sold when the goods are sold.

Manufacturing Overheads

All indirect costs associated with the production process, including utilities, maintenance, and factory management salaries.