Doug Selkirk Is a Sales Manager for IBM

question 94

Multiple Choice

Doug Selkirk is a sales manager for IBM. He has asked his assistant to prepare an analysis that shows what percent over or under quota each sales rep was during the last year. This is an example of

• A) using natural accounts.
• B) the contribution-margin approach.
• C) sales analysis.
• D) target market analysis.
• E) performance analysis.

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Definitions:

Gross Profit

The financial metric that represents the difference between sales revenue and the cost of goods sold.

LIFO Inventory Method

An accounting technique where the most recently acquired items of inventory are recorded as sold first, often used to calculate cost of goods sold and ending inventory.

Merchandise Inventory

The goods and products a company holds for the purpose of selling to customers.

FIFO Inventory Method

An approach to valuing inventory that assumes the first items purchased are the first ones sold, leading to older inventory costs being assigned to cost of goods sold.