Dell Uses the Sales-Order Ratio to Measure the Performance of Its

question 106

Multiple Choice

Dell uses the sales-order ratio to measure the performance of its salespeople. If, in the past year, a salesperson made $2 million in sales, called on 5,250 potential business customers (either by phone or in person) , and got 3,124 orders, what was this sales rep's order-call ratio (to the nearest whole number amount) ?

• A) 18 percent
• B) 29 percent
• C) 73 percent
• D) 59 percent
• E) 10 percent

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Definitions:

Conversion Costs

Expenses incurred in the process of converting raw materials into finished products, typically including labor and overhead costs.

Cost Of Production Report

A detailed report typically used in process costing that summarizes the material, labor, and overhead costs encountered during a period.

Allocation

Allocation refers to the process of assigning or distributing resources, costs, or expenses among different departments, processes, or projects within an organization, according to specific rules or criteria.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of complete units for inventory accounting purposes.