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.

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Definitions:

Principal

In a legal context, a principal can also refer to the person who has authorized another (an agent) to act on their behalf.

Apparent Authority

A situation where a person appears to have the authority to act on behalf of another, even if such authority has not been explicitly given.

Agent

Someone authorized to act on behalf of another person or entity, often in business transactions or legal matters, with certain duties and powers.

Ratification

Ratification is the act of officially approving an agreement or contract, making it valid, or the process of confirming and accepting unauthorized actions by an agent on behalf of a principal.