The Sales Force for Stanley Tool Corp

question 14

Multiple Choice

The sales force for Stanley Tool Corp. has been instructed to offer a 10 percent discount to its retailers on all units ordered in excess of the previous month's order amount. The offer will be extended to Stanley's independent retailers, applicable to several small hardware lines. The objective of this type of sales promotion is to

• A) build up reseller inventories.
• B) increase traffic in retail stores.
• C) improve shelf space and displays.
• D) reinforce advertising.
• E) encourage trial purchases of a new product.

Understand and calculate the cash conversion cycle to analyze a company's efficiency in managing its working capital.

Identify the criteria for choosing allocation bases for indirect costs.

Describe the process of preparing departmental income statements and the steps involved.

Define joint costs and explain methods for their allocation.