Figure 21-7 -Consider Figure 21-7 Above, Which Is an Account Management Policy

question 193

Multiple Choice

Figure 21-7
-Consider Figure 21-7 above, which is an account management policy grid that groups customers according to the level of opportunity and the firm's competitive sales position. Box C represents which account management policy?

• A) accounts that the firm should consider replacing personal calls with telephone sales or direct mail to service accounts
• B) accounts that should emphasize a heavy sales organization position or shift resources to other accounts if a stronger sales organization position is impossible
• C) accounts that offer a poor opportunity because they have high levels of competition
• D) accounts that should receive a high level of sales calls and service to retain and possibly build accounts
• E) accounts that should receive moderate level of sales and service to maintain current position of sales organization

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Definitions:

Attractive Location

A place considered desirable for living, working, or setting up a business due to its advantages like accessibility, scenery, or economic opportunity.

Fixed Costs

Expenses that do not change in proportion to the level of production or sales, such as rent, salaries, and equipment leases.

Variable Costs

Costs that vary directly with the level of production or output.

Cost-Volume Analysis

A managerial accounting technique used to analyze how various levels of sales and production will affect profit.