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

question 23

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) All of these are correct.

Evaluate and audit the appropriateness of using the equity method for investment accounting.

Understand the differences in equity method accounting under International Accounting Standards and FASB ASC.

Understand the primary objective of the fair value method of accounting for an investment.

Grasp the procedural steps and conditions under which a change from the fair value method to the equity method of accounting for investments is made.

---

Definitions:

Impersonal Communication

Communication style characterized by a lack of personal connection, often involving formal, standardized messages.

E-bulletin Board

A digital platform that serves as a notice board for posting information, announcements, and discussions, accessible via the internet.

Upward Communication

The process of information flow from the lower levels of a hierarchy to the higher levels within an organization.

Nonthreatening Climate

An environment where individuals feel safe and are encouraged to express their ideas and concerns without fear of negative consequences.