The Workload Method of Calculating the Number of Salespeople a Company

question 18

Multiple Choice

The workload method of calculating the number of salespeople a company needs to hire:

• A)asks salespeople to perform duties traditionally performed by other job functions
• B)is logical in theory,but is impractical to calculate and implement
• C)uses computations that are too difficult to be practical
• D)takes into account the various duties of salespeople as well as the company's goals
• E)is elegant,but overestimates the number of salespeople needed

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Definitions:

Allowance Method

An accounting technique used to estimate and account for potential uncollectible accounts receivable and bad debts.

Net Realizable Value

The projected selling price of items subtracted by their sales or disposal expenses.

Accounts Receivable

Outstanding payments from customers to a company for goods or services already delivered but not yet compensated for.

Bank Reconciliation

The process of comparing and matching figures from the accounting records against those presented on a bank statement to ensure they are in agreement and accurate.