BM410 Lesson 6 and 7 Exam Score 95 Percent

Question 1

To implement a new or modified reward system, sales managers should do all of the following except

Question options:

	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

Question options:

	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?

Question options:

	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.

Question options:

	Degree
	Persistence
	Tenacity
	Direction
Question 5

Current spendable income includes

Question options:

	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:

Question options:

	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?

Question options:

	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?

Question options:

	regressive.
	incremental.
	a combination of constant and regressive rates.
	progressive.
Question 9

Perhaps the most serious shortcoming of straight-commission plans is that

Question options:

	salespeople may earn more than their managers.
	they contribute little to company loyalty, resulting in potential <br /> 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

Question options:

	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?

Question options:

	Opportunity for personal growth
	Recognition for achievement
	Sense of accomplishment
	Job security
Question 12

A salesperson who is extrinsically motivated

Question options:

	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.

Question options:

	Sales
	Intrinsic
	Noncompensation
	Compensation
Question 14

If the nonselling administrative duties of the salesperson are of major importance, which compensation plan is recommended?

Question options:

	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

Question options:

	degree.
	persistence.
	tenacity.
	intensity.
Question 16

What change in the firm's salesforce reward system might be in response to customers' needs?

Question options:

	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?

Question options:

	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?

Question options:

	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

Question options:

	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

Question options:

	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 <br /> 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?

Question options:

	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:

Question options:

	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

Question options:

	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?

Question options:

	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?

Question options:

	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

Question options:

	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.

Question options:

	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:

Question options:

	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.

Question options:

	objective and task
	expenditure projection
	cost-justification
	percentage-of-sales
Question 30

Probably the most often used method to establish selling budgets is

Question options:

	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

Question options:

	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 options:

	hierarchical sales analysis.
	scaled sales analysis.
	stepladder sales analysis.
	pyramid sales analysis.
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 options:

	20 percent.
	40 percent.
	50 percent.
	25 percent.
Question 34

In budgeting for each expense category, a sales manager should attempt to

Question options:

	set the budget at the lowest possible level.
	determine the lowest expenditure level necessary to achieve the sales quotas.
	cut costs from last year's level of expenditure.
	justify the highest possible level of expenditure in order to have some flexibility in the budget.
Question 35

In this approach to profitability analysis, the indirect or shared costs are not included in the individual unit analysis:

Question options:

	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 36

Which of the following would not be an expense category for a selling budget?

Question options:

	Recruiting expenses
	Salespeople's lodging expenses
	Production expense
	Salespeople's salaries
Question 37

Productivity improvements can be obtained by

Question options:

	increasing output.
	increasing input.
	increasing output with the same level of input.
	increasing input with the same level of output.
Question 38

Recruitment, selection, and sales training are examples of factors considered in which area of the sales organization audit framework?

Question options:

	Sales-management evaluation
	Sales-organization strategies
	Sales-organization environment
	Sales-management functions
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 options:

	Selling too many low-margin products
	Problems with accounts payable
	Negotiating low selling prices
	Problems with accounts receivable
Question 40

The most common type of sales organization assessment focuses on

Question options:

	cost analysis.
	profitability analysis.
	productivity analysis.
	sales analysis.