When Using a Two-Factor Analysis to Classify Accounts Based on Account

question 25

Multiple Choice

When using a two-factor analysis to classify accounts based on account opportunity and competitive position, which of the following should a salesperson allocate minimal selling effort to?

• A) high opportunity and strong competitive position
• B) high opportunity and weak competitive position
• C) low opportunity and strong competitive position
• D) low opportunity and weak competitive position

Prepare and adjust financial records based on bank reconciliation findings, including recognizing NSF checks and bank errors.

Recognize the principles of internal control procedures and identify weaknesses in cash handling and recording practices.

Calculate discounts on sales and understand their impact on sales revenue and net income.

Understand the sales cycle and the recognition of revenue, including the effects of sales returns, discounts, and allowances on financial statements.

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Definitions:

Echelon Inventory

The stock held across different stages of the supply chain, considering the inventory at all levels together.

Cycle Inventory

Cycle Inventory refers to the portion of inventory available in a warehouse or storage that is held to meet the regular sales demand.

Safety Inventory

Extra stock kept on hand to prevent stockouts and ensure product availability despite uncertainties in demand or supply lead times.

Throughput

The quantity of goods and materials passing through a system or process in a given period, often used to measure the efficiency of production processes.