A Company Directs Its Sales Force Members to Use Multiple

question 70

Multiple Choice

A company directs its sales force members to use multiple selling strategies.What are its salespeople expected to do?

• A)split commissions if a buyer's purchasing office is in one salesperson's territory and the retail outlet in the territory of another salesperson
• B)have several sales approaches planned so that if their first sales attempt is unsuccessful, they can shift to an alternate approach without delay
• C)develop a variety of plans for selling the numerous products in the company's product line to a variety of different market segments
• D)invest the bulk of their time and other resources in the large, important accounts in their territories
• E)develop one form of presentation for existing accounts and another for prospects

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Definitions:

Variable Overhead Efficiency Variance

A financial metric indicating the difference between the actual variable overhead costs incurred and the expected (or standard) costs, based on the efficient use of variable inputs.

Variable Manufacturing Overhead

Costs that fluctuate with the level of production output, such as utilities or materials that vary with production volumes.

Direct Labor-hours

The total amount of time spent by workers directly involved in the manufacturing of a product.

Variable Overhead Standards

The budgeted or standard costs associated with variable overheads, which are expected to change in proportion to different levels of production activity.