Activity based questions

Question # 00003957 Posted By: smartwriter Updated on: 11/23/2013 12:00 PM Due on: 11/30/2013
Subject Accounting Topic Accounting Tutorials:
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MULTIPLE CHOICE QUESTIONS

62. Sales analysis is a:

well-accepted trend analysis method.

necessity for making all important marketing decisions.

way of assuring that future sales will be profitable.

detailed report of likely profitability.

detailed breakdown of a company's sales records.

63. The best way to break down and analyze sales data is:

by order size.

by geographic region.

by customer type.

by product, package, size, grade or color.

any of the above, depending on the situation.

64. The most useful breakdown of data in a sales analysis is by:

size of order.

product, package size, grade, or color.

customer type.

geographic region.

any or all of the above--depending on the situation.

65. A marketing manager who wants to analyze the firm's sales should be aware that:

sales invoice files contain little useful information.

the best way to analyze sales data is according to geographic regions.

sales analysis involves a detailed breakdown of a company's sales forecasts.

sales analysis may not be possible unless the manager has made arrangements for the company to capture identifying information about each sale.

a manager can never have too much data.

66. Sales analysis:

requires more information than is available from traditional accounting reports.

can be done in different ways--there is no single "best way."

often studies how sales patterns change over time.

All of the above are true.

None of the above is true.

67. Marketing sales analysis:

keeps track of whether a firm's sales are increasing or decreasing.

requires a detailed breakdown of a company's sales records.

is very hard to do--because computers must be involved.

looks for exceptions or variations from planned performance.

tries to avoid the 80/20 rule.

68. Detailed sales analysis is:

not worth the cost unless the firm is very unprofitable.

based on the information available on traditional accounting reports.

important for producers, but usually not that valuable for retailers.

most useful when it analyzes costs from different possible target markets.

None of the above is true.

69. Sales analysis:

typically involves reorganizing existing information rather than gathering new information.

may involve analyzing many different breakdowns of overall sales.

is usually a good first step when setting up a control system.

All of the above are true.

None of the above is true.

70. The major difference between a sales analysis and a performance analysis is that:

performance analysis looks at variations from planned performance, while sales analysis shows what happened.

sales analysis looks at individual transactions, while performance analysis groups them into categories.

sales analysis is a control procedure, while performance analysis is part of implementation.

sales analysis is concerned with expected sales, while performance analysis is concerned with past sales.

sales analysis is used to find profitable sales patterns, while performance analysis seeks unprofitable patterns.

71. Compared with sales analysis, PERFORMANCE ANALYSIS:

shows which customers should be dropped.

looks for exceptions or variations from planned performance.

does not do as much comparing against standards.

shows how to improve performance.

All of the above.

72. Performance analysis differs from sales analysis in that performance analysis involves:

detailed breakdowns of a company's sales records.

analyzing only the performance of sales representatives.

comparing performance against standards--looking for exceptions or variations.

analyzing only people--not products or territories.

budgeting for marketing expenditures on the basis of contribution margins.

73. A marketing "performance analysis" is most likely to compare:

an individual sales rep's performance to total company sales.

a firm's sales with its competitors' sales.

sales by product to sales by territory.

advertising cost to sales.

planned sales with actual sales.

74. The main purpose of a performance analysis is to:

see whether or not the 80/20 rule applies in a particular situation.

uncover variations in performance that may be hidden in summary information.

determine who should receive a performance bonus when profit is greater than expected.

determine if the marketing budget is large enough to achieve the expected sales performance.

provide a detailed breakdown of a company's sales records.

75. Which of the following statements might result from a performance analysis?

Our California salesman sold more aluminum tubing than any of our other reps.

Sophia Sanchez calls on two of our three biggest customers.

Joshua Voigt sold less tubing to wholesalers than to manufacturers.

Walker Brown sold more aluminum tubing than steel tubing.

Pele Ruiz's sales are over his quota.

76. Doug Selkirk is a sales manager for IBM. He has asked his assistant to prepare an analysis that shows what percent over or under quota each sales rep was during the last year. This is an example of

using natural accounts.

the contribution-margin approach.

sales analysis.

target market analysis.

performance analysis.

77. Performance analysis:

is based on qualitative factors, as contrasted with sales and cost analysis which are based on quantitative data.

is most useful in situations where the iceberg principal is not likely to be a concern.

indicates why problems have occurred and how to solve them.

may be based on several different performance indexes.

All of the above are true.

78. A good reason for using performance indexes is to:

convert sales data to profit data.

make it easier to compare situations.

find territories where actual sales are very high or low.

direct management attention to territories where the market potential is greatest.

None of the above is true.

79. Performance indexes:

are based on the "iceberg principle."

show the relation of one value to another.

are used mainly to eliminate lazy salespeople.

provide a qualitative measure of what "ought to happen."

are calculated from the Consumer Price Index.

80. If Salesperson A has a performance index of 80 and Salesperson B has a performance index of 120:

Salesperson A's performance should be used as a model to improve everyone's performance.

Salesperson B's performance should be improved to bring it up to "average."

Salesperson A may be having some problems.

Salesperson B should be fired.

the two average out to 100--and "all is well."

81. If Salesperson X had a performance index of 80 and Salesperson Y had a performance index of 120, then:

Salesperson X may be having some problems and his sales performance should be investigated.

the two would average out to 100--and this would suggest that "all is well."

Salesperson X's performance should be investigated as a guide to improving everyone's performance.

Salesperson Y probably should be fired.

Salesperson Y obviously had higher sales than Salesperson X.

82. Information about five sales reps and their territories is presented below. Which would have the highest performance index?

Aayak

Bellio

Cadams

Dooty

Eayma

83. Avon, Inc., has analyzed the market potential in its territories and set sales quotas for its salespeople. It is now in a good position to develop ______________ indexes at the end of the year.

MIS

performance

PERT

sales

contribution

84. The "iceberg principle":

explains why some firm's sales are "cooler" that others.

explains why some customers are more profitable than others.

suggests that sales will vary from one territory to another.

suggests that much good information may be hidden in summary data.

says that sales reps should never make "cold calls" on customers.

85. The iceberg principle suggests that:

most competitors' strategies are not obvious on the surface.

small customers usually have the most hidden profit potential.

conclusions based on summary information are often misleading.

no matter what control procedure is used, most major problems are impossible to detect until it is too late.

None of the above is true.

ements best explains the "iceberg principle"?

Several salespeople in a sales force usually meet their quotas while many others don't.

Many salespeople don't make their quotas because they only try to sell to large customers.

Most consumer decisions are at the 90 percent pre-conscious level.

Ten percent of a firm's customers usually account for 90 percent of its sales.

Good performance in some areas may hide poor performance in other areas if only averages are evaluated.

87. Averages are useful for summarizing data--but only analyzing "averages" may be misleading according to:

the "iceberg principle."

AIDA.

hypothesis--testing theory.

the "law of central tendency."

the "50/50" rule.

88. A sales manager has just discovered that one of his sales reps has sales about 20 percent below his quota. The sales manager should conclude:

that the sales rep's quota was set too high.

that the sales rep lacks the desire to succeed.

that "all is well" because other salespeople had sales that were at least 20 percent over their quotas.

that the salesperson's performance index is 4 (i.e., 80:20).

nothing thus far--because of the "iceberg principle."

89. Which of the following statements best describes the "iceberg principle"?

Problems in one area may be offset by good performances in other areas--and thus the problems may not be visible on the surface.

Ten percent of the items in inventory usually account for 80 percent of the sales.

Within a company's sales force there are usually one or two sales reps who don't carry their weight.

Many sales reps do not make their quotas because they ignore certain clients.

Airfreight is less risky than shipping by boat.

90. Which of the following statements by a sales manager best reflects an understanding of the iceberg principle?

"Detailed cost analysis gets you focused on small parts of the problem, whereas general summaries make it easier to see the really big problems."

"Most costs that look like they're fixed are actually changing all of the time."

"Don't tell me that you're certain we're going to increase sales. They were certain that an iceberg couldn't sink the Titanic!"

"Let's not dwell on sales data summaries--let's get below the surface and study the details."

"Cost problems always show up first--but controlling expenses doesn't mean that you won't run into revenue problems."

91. General summaries of overall marketing cost data

may hide problems rather than highlighting them.

are usually the key to identifying how to improve the marketing plan.

should not be too detailed--since detailed analysis requires allocating costs that are actually fixed.

are usually enough to reveal areas where changes are needed.

All of the above are true.

92. Marketing cost analysis shows that one of Buildco, Inc.'s customers is unprofitable, so Buildco should:

refuse to sell to that customer.

try to determine why this customer is unprofitable.

drop the customer and shift all fixed costs to the other customers.

assign a new salesperson to that account.

immediately develop a plan to sell more to that customer.

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Tutorials for this Question
  1. Tutorial # 00003739 Posted By: smartwriter Posted on: 11/23/2013 12:01 PM
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    is large enough to achieve the expected sales performance. provide ...
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