Question 1
To implement a new or modified reward system, sales managers should do all of the following except
clearly communicate details of the plan to the salesforce prior to its implementation.
encourage salesforce feedback.
promptly answer questions.
issue a press release detailing the company's changes.
Question 2
The most widely used type of financial pay plan is
straight salary.
salary plus a bonus.
a combination pay plan.
straight salary plus expenses.
Question 3
Which of the following is an example of a selling situation requiring a commission split?
A field salesperson sells a computer to a customer and sometime after the sale, it requires a service call from a company service technician.
A salesperson needs help from a salaried technical expert to provide a potential customer with certain information.
A large company purchases products from a company and ships them to its affiliates in several cities. The selling firm's salespeople in these cities are then required to provide follow-up and service.
A salesperson provides a list of referrals that aren't in his or her territory to the salesperson covering that territory.
Question 4
________ implies that salespeople choose where their effort will be spent among various job activities.
Degree
Persistence
Tenacity
Direction
Question 5
Current spendable income includes
salaries and commissions, but not bonuses.
salaries only.
salaries, commissions, and bonuses.
any cash award, but not bonuses such as merchandise or free trips.
Question 6
Flexibility has been cited as both an advantage and a disadvantage of this compensation pay plan:
Straight salary
Combination pay plans
Straight commission
Straight commission with bonuses
Question 7
When it's difficult for the salesperson to secure the first order from the customer, but reorders are virtually automatic, what form of commission rate would be appropriate?
Regressive
Incremental
A combination of constant and progressive rates
Constant
Question 8
Which one of the following forms of commission rate may actually result in overselling and higher selling costs to the company?
regressive.
incremental.
a combination of constant and regressive rates.
progressive.
Question 9
Perhaps the most serious shortcoming of straight-commission plans is that
salespeople may earn more than their managers.
they contribute little to company loyalty, resulting in potential salesforce control problems.
the firm suffers financially if the market declines or stagnates.
they link compensation to actual sales.
Question 10
A salesperson who is intrinsically motivated
is motivated by the rewards that the job provides.
is motivated by the need for love and belongingness.
finds the job to be inherently rewarding.
finds that the job's fringe benefits, pay, and generous vacation policy provide motivation.
Question 11
When a sales manager assures salespeople that they fulfill a critical role in revenue production and other key activities within the company, which type of nonfinancial reward is being offered?
Opportunity for personal growth
Recognition for achievement
Sense of accomplishment
Job security
Question 12
A salesperson who is extrinsically motivated
would work for the pure pleasure of working.
doesn't need or desire formal recognition for outstanding achievements.
is motivated by personal growth needs.
is motivated by the rewards that the job provides.
Question 13
_______ rewards are those that are given in return for acceptable performance or effort.
Sales
Intrinsic
Noncompensation
Compensation
Question 14
If the nonselling administrative duties of the salesperson are of major importance, which compensation plan is recommended?
Straight salary
Salary plus bonuses
Straight commission
Salary plus commission
Question 15
The amount of mental and physical effort put forth by the salesperson refers to
degree.
persistence.
tenacity.
intensity.
Question 16
What change in the firm's salesforce reward system might be in response to customers' needs?
A pay freeze
A change from straight commission to straight salary
The introduction of a sales contest
A change from straight salary to straight commission
Question 17
Which of the following is an advantage of a straight-commission compensation plan?
Operating costs are minimized during slack selling periods.
They are highly flexible, allowing frequent changes in compensation practices to achieve short-term objectives.
They are attractive to college graduates desiring an opportunity to earn while they train.
The salesforce's loyalty to the company is enhanced.
Question 18
The most commonly used definitions of motivation include which of the following three dimensions?
Intensity, degree, persistence
Severity, direction, perseverance
Persistence, intensity, direction
Instruction, degree, tenacity
Question 19
Industries that have traditionally used a straight-commission-based compensation pay plan include all of the following except
real estate.
securities.
automobiles.
computers.
Question 20
Formal recognition programs have a better chance of success if sales managers do all of the following except
publicize the program before it is implemented.
make it easy enough to allow for a majority of the salesforce to win.
ensure that the celebration for winners is well-conceived and executed.
arrange for individual salespeople or sales teams to acknowledge the support of others who helped them win the award.
Online Exam 7
Question 21
Which of the following provides a benchmark for the evaluation of selling costs?
Sales quotas
Selling budgets
Cost quotas
Variance analysis
Question 22
In this type of profitability analysis, the shared selling costs are allocated to individual units based on some type of cost allocation procedure:
The contribution approach to income statement analysis
The full-cost approach to residual income analysis
Return on assets managed approach
The full-cost approach to income statement analysis
Question 23
A more centralized sales organization will place budget responsibility
with the sales manager.
with the salesperson.
at lower sales management levels.
at higher sales management levels.
Question 24
In a sales analysis, which of the following comparisons would not be made?
Comparisons with forecasts
Comparisons with previous period
Comparisons between actual and budgeted costs
Comparisons with industry/competitors
Question 25
Which method of determining expenditure levels for selling expense categories depends upon accurate sales forecasts?
Objective and task method
Zero-based budgeting
Cost-justification method
Percentage-of-sales method
Question 26
The sales growth experienced by different organizational levels can be determined by
a comparison of actual sales results to those achieved by competitors.
a comparison of actual sales results to sales forecasts.
a comparison of actual sales results to sales quotas.
a comparison of actual sales results to previous periods' sales.
Question 27
The basic concept underlying the use of this analytical method is that costs are allocated to individual units on the basis of how the units actually expend or cause these costs.
Activity-based costing
Cost analysis
Profitability analysis
Hierarchical sales analysis
Question 28
The basic form of this method for determining expenditure levels for selling expense categories could be called zero-based budgeting:
Objective and task method
Profitability projections
Cost-justification method
Profit margin budgeting
Question 29
The _______ method calculates an expenditure level for each category by multiplying an expenditure percentage times forecasted sales.
objective and task
expenditure projection
cost-justification
percentage-of-sales
Question 30
Probably the most often used method to establish selling budgets is
objective and task method.
profitability projections.
cost-justification method.
percentage-of-sales method.
Question 31
The two most direct approaches for evaluating sales organization effectiveness are
sales analysis and income statement analysis.
productivity analysis and cost analysis.
sales analysis and cost analysis.
residual income analysis and sales analysis.
Question 32
An evaluation of sales results throughout the sales organization from a top-down perspective is a
Question 33
Calculate the profit contribution as a percentage of sales to be used in the ROAM calculation. If sales = $20,000,000; accounts receivable = $8,000,000; and profit contribution = $5,000,000, the profit contribution is
Question 34
In budgeting for each expense category, a sales manager should attempt to
Question 35
In this approach to profitability analysis, the indirect or shared costs are not included in the individual unit analysis:
Question 36
Which of the following would not be an expense category for a selling budget?
Question 37
Productivity improvements can be obtained by
Question 38
Recruitment, selection, and sales training are examples of factors considered in which area of the sales organization audit framework?
Question 39
District 1 has a poor level of ROAM. However, their profit contribution percentage is acceptable, but they have a very low asset turnover ratio. What might cause this?
Question 40
The most common type of sales organization assessment focuses on
ANSWER WILL BE SENT ON EMAIL.
