Organization of the Sales Force by Product

question 54

Multiple Choice

Organization of the sales force by product:

• A) Is not advisable for companies selling highly technical products
• B) Is best used when cost is the deciding factor on which organizationally structure to use
• C) Requires fewer sales management personnel and lower administrative costs than a geographic organization
• D) Can result in duplication of sales effort
• E) Is most commonly used by firms that manufacture only one product line

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Definitions:

Average Variable Costs

The total variable costs of production divided by the quantity of output produced.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance.

Average Variable Cost

The total variable cost per unit of output, obtained by dividing total variable costs by the quantity of output.

Output

The total amount of goods or services produced by a company or country.