Sales Territories Are a Disadvantage for Some Firms in All

question 57

Multiple Choice

Sales territories are a disadvantage for some firms in all of the following cases EXCEPT when:

• A) sales performance is difficult to monitor and evaluate.
• B) personal friendships are the basis for attracting customers.
• C) salespeople are more motivated if they are not restricted by territorial boundaries.
• D) the company is too small to be concerned about segmenting the market into sales areas.
• E) management lacks the knowledge, time, and interest to develop and establish sales territories.

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Definitions:

Transferred Out

In cost accounting, this term refers to goods that have been completed in one production process or department and are moved to the next stage in the production process.

Cost Reconciliation Report

A document that reconciles the total costs allocated to completed and ongoing jobs with the total costs recorded in the accounting records.

Total Cost

The sum of all expenses associated with the production or acquisition of goods and services, including fixed and variable costs.

Department

A specialized functional area within an organization that focuses on a specific set of tasks or responsibilities.