Quantitative Assessments of Sales Performance May Be Based on Output-Related

question 75

Multiple Choice

Quantitative assessments of sales performance may be based on output-related measures, such as

• A) dollar or unit sales volume, last year/current year sales ratio, and new accounts generated.
• B) sales calls, selling expenses, and account management policies.
• C) selling expenses, profits generated, and emotional intelligence quotient.
• D) new lead generation, sales quotas, and sales increases over the previous evaluation period.
• E) recruitment, selection, and training of new sales representatives.

Calculate and understand the treatment of intra-entity gross profit and its impact on consolidated net income.

Recognize the adjustments necessary for intra-entity sales of inventory in preparing consolidated financial statements.

Identify the effects of the equity method of accounting on consolidation, particularly with regards to intra-entity transactions.

Understand the consolidation process including the elimination of intra-entity transactions.

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Definitions:

Accounting

The systematic process of recording, measuring, and communicating financial information about economic entities.