Lori Winters, a Regional Sales Manager, Is Interested in the Profitability

question 13

Multiple Choice

Lori Winters, a regional sales manager, is interested in the profitability of the different sales reps in her region. She has used a variety of different approaches for allocating fixed sales expenses to the different sales reps, but she reaches very different conclusions depending on which allocation approach is used. In this case, it would be wise for Ms. Winters to supplement her other analyses with an analysis based on

• A) the contribution-margin approach.
• B) the full-cost approach.
• C) the marketing audit approach.
• D) none of the above.
• E) all of the above.

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Definitions:

Pay Equity

The practice of compensating employees equally for jobs requiring comparable skills, responsibilities, and effort, regardless of gender or other irrelevant factors.

Compensation Policy

A set of guidelines that an organization follows to determine how employees will be compensated, including salaries, benefits, and bonuses.

Pay Inequities

Situations where there is an unfair or unequal distribution of pay among employees, often due to discrimination based on gender, race, or other factors.

Annual Payroll

The total amount of money paid to employees by a business over the course of a year, including wages, salaries, bonuses, and deductions.