To Encourage Salespeople to Keep Costs Down and Increase Gross

question 7

Multiple Choice

To encourage salespeople to keep costs down and increase gross sales margins,companies are beginning to:

• A)figure sales margins directly into the calculation of sales reps' quotas and bonuses
• B)prohibit sales reps from taking clients to dinner
• C)limit the products their sales reps are allowed to sell
• D)push products that have high profit margins,even if they products are not right for customers
• E)sell all products at full retail price

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Definitions:

Trend Analysis

The practice of collecting information and attempting to spot a pattern, often used in financial markets or statistical data analysis.

Horizontal Analysis

An analytical method in financial statements analysis where amounts in a series of financial statements are compared line by line to detect changes and trends over different periods.

Vertical Analyses

An accounting method where each entry in a financial statement is listed as a percentage of another item to analyze relative size and composition.

Horizontal Analyses

Analysis technique for financial statements that evaluates changes in financial information over multiple reporting periods using percentage or absolute comparisons to find growth or decline trends.