Which of the Following Is True of Sales Quotas

question 86

Multiple Choice

Which of the following is true of sales quotas?

• A)They are limited in the sense that they can be used only to evaluate salespersons' performances but not to evaluate and control their efforts.
• B)They are not representative of specific sales goals assigned to each territory or unit over a designated time period.
• C)They allow a management to pinpoint individuals and units that are performing above average and those experiencing difficulty.
• D)They allow a company to track the amount of profitable sales a company is engaging in.

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Definitions:

Total Cost Variance

The difference between the actual cost and the standard or expected cost of goods or services produced over a given period.

Standard Cost

A predetermined cost of manufacturing a product or providing a service, used for budgetary and inventory purposes.

Price Variance

The difference between the standard cost of a product or service and its actual cost, used in budgeting and financial analysis.

Quantity Variance

A measure used in budgeting and accounting to compare the actual quantity of materials or products used to the expected amount under standard costing.