The Breakdown Method of Determining Sales Force Size

question 78

Multiple Choice

The breakdown method of determining sales force size:

• A)Determines the number of sales personnel needed by dividing the estimated productivity of one salesperson by the forecasted sales volume
• B)Is actually more useful for assigning salespeople to territories than determining the size of the sales force needed
• C)Determines the number of sales personnel needed by dividing the forecasted sales volume by the estimated productivity of one salesperson
• D)Is conceptually one of the most difficult ways to calculate sales force size
• E)Is a simplified version of the incremental approach

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Definitions:

Credit Sales

Sales transactions where the customer is allowed to pay at a later date, extending credit rather than requiring payment upfront.

Budgeted Accounts Receivable

The projected amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Collections

Refers to the process or activity of gathering or receiving payments from customers, typically relating to accounts receivable.

Cash Budget

A budget that estimates cash inflows and outflows over a specific period, used to assess whether a company has sufficient cash to meet its obligations.