The Criteria for Sales Evaluations Have Changed to Include Customer

question 132

Multiple Choice

The criteria for sales evaluations have changed to include customer satisfaction,profit contribution,and customer retention as measures of success.This change was motivated by:

• A)complaints from upper-level management about the cost of commission-based compensation programs.
• B)difficulty in recruiting competent employees because of the variability of sales personnel's compensation.
• C)reluctance to encourage sales personnel to develop new accounts.
• D)an increasingly long-term orientation that results from greater quality management and customer relationship building efforts.

Understand the significance of fixed and variable expenses in cost-volume-profit analysis.

Understand the concept of break-even analysis in business.

Calculate unit product cost using both absorption costing and variable costing methods.

Prepare income statements under both absorption costing and variable costing.