Consider Figure 20-7 Above,which Is an Account Management Policy Grid

question 345

Multiple Choice

Consider Figure 20-7 above,which is an account management policy grid that groups customers according to the level of opportunity and the firm's competitive sales position."B" represents which account management policy?

• A)accounts that the firm should consider (1)replacing personal calls with telephone sales or direct mail to service accounts and (2)dropping account if unprofitable
• B)accounts may offer a good opportunity if the sales organization can overcome its weak position
• C)accounts that should emphasize a heavy sales organization position or shift resources to other accounts if a stronger sales organization position is impossible
• D)accounts that should receive a high level of sales calls and service to retain and possibly build accounts
• E)accounts that should receive moderate level of sales and service to maintain current position of sales organization

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Definitions:

Sales on Account

Revenues generated from sales where payment is deferred to a later date.

Ending Accounts Receivable

The amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for at the end of an accounting period.

Stockholders' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership stake of shareholders.

Net Plant

The net book value of a company’s plant assets, typically representing the total cost of these assets minus accumulated depreciation.