What Is One Method Sales Managers Use to Balance Territorial

question 40

Multiple Choice

What is one method sales managers use to balance territorial workloads and earning potential?

• A) Compare current sales with previous sales
• B) Use a combination compensation plan
• C) Pay salespeople with larger territories higher commissions
• D) Assign them the same-sized territories
• E) Use differential commission rates

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Definitions:

Allowance Method

An accounting technique used to account for bad debts, which estimates uncollectible accounts receivable and creates a provision for them.

Accounts Receivable

Financial dues from customers to an organization for products or services that have been dispensed but not reimbursed.

Allowance for Doubtful Accounts

A contra asset account used to estimate the portion of a company's receivables that may not be collectible.

Bad Debts Expense

This is an expense reported on the income statement, reflecting the cost of credit sales that a company does not expect to collect.