What Should Be the Reaction of Upper Level Managers When

question 11

Multiple Choice

What should be the reaction of upper level managers when a difference between budgeted and actual sales exists?

• A)The difference should be investigated if it is unfavourable.
• B)The difference should be ignored since economic conditions affect sales and cannot be controlled by the company's managers.
• C)It depends on whether the difference is material or not.
• D)It depends on management personalities.

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Definitions:

Company Salesforce

The division of a company responsible for sales operations and management, tasked with achieving sales targets and developing customer relationships.

Selling Costs

Expenses associated with marketing and selling a product or service, including advertising, sales personnel salaries, and commissions.

Sales Revenues

The total amount of money generated from the sale of goods or services before any expenses are subtracted.

Market Segmentation

The process of dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics.