Question 1

Costs should be allocated according to a product's sales volume.

Accepted Answer

A) True 
 B)False  False

Question 2

A(n) _____________ is a shared cost tied to several functions or products.

Accepted Answer

A)  Indirect cost 
B)  Expense 
C)  General expense 
D)  Indirect expense 
E)  Direct cost 
A)  Indirect cost 
B)  Expense 
C)  General expense 
D)  Indirect expense 
E)  Direct cost A

Question 3

If they do profitability analysis, companies are most likely to do it for:

Accepted Answer

A)  Products 
B)  Customers 
C)  Territories 
D)  Salespeople 
E)  Management 
A)  Products 
B)  Customers 
C)  Territories 
D)  Salespeople 
E)  Management A

Question 4

The cost of renting a warehouse to store component parts for making various sizes of electric generators is an example of a general expense.

Accepted Answer

A) True 
 B)False

Question 5

In activity-based costing, the three informational components to the company are:

Accepted Answer

A)  Channels, products, and vendors 
B)  Customers, channels, and costs 
C)  Resources, activities, and cost objects 
D)  Drivers, products, and customers 
E)  Products, products, and products 
A)  Channels, products, and vendors 
B)  Customers, channels, and costs 
C)  Resources, activities, and cost objects 
D)  Drivers, products, and customers 
E)  Products, products, and products

Question 6

What are the four steps in conducting a marketing profitability analysis?

Accepted Answer

Step 1. Specify purpose and determine fu

Question 7

Accounting-based costing (ABC) identifies the cause-and-effect relationship between costs and desired organizational outcomes.

Accepted Answer

A) True 
 B)False

Question 8

What activities are involved when doing marketing cost analysis?

Accepted Answer

Researchers gather,

Question 9

A company that manufactures lighting fixtures wants to do a marketing cost analysis based on customer type (home owner, commercial, and institutional). Which of the following is the best example of a general expense?

Accepted Answer

A)  The cost of setting up a booth at a trade show for home decorators 
B)  The cost of developing a team selling sales presentation to sell lighting to a chain of hospitals 
C)  A sales contest to encourage sales reps to locate new commercial buyers 
D)  The cost of shipping 400 fluorescent light fixtures to a newly built middle school 
E)  None of the above 
A)  The cost of setting up a booth at a trade show for home decorators 
B)  The cost of developing a team selling sales presentation to sell lighting to a chain of hospitals 
C)  A sales contest to encourage sales reps to locate new commercial buyers 
D)  The cost of shipping 400 fluorescent light fixtures to a newly built middle school 
E)  None of the above

Question 10

Which of the following statements about how a manufacturer categorizes its costs and expenses is true?

Accepted Answer

A)  A general expense is much like a direct cost in that it cannot be identified directly with a specific object of profit measurement, such as a territory, salesperson, or product 
B)  All costs are categorized as either direct or indirect-but never as both 
C)  A salesperson's salary would be a direct cost for his or her territory, but an indirect cost for the product sold 
D)  Advertising is a direct cost 
E)  A specific expense is much like a direct expense in that it can generally be identified with a wide range of products and functions 
A)  A general expense is much like a direct cost in that it cannot be identified directly with a specific object of profit measurement, such as a territory, salesperson, or product 
B)  All costs are categorized as either direct or indirect-but never as both 
C)  A salesperson's salary would be a direct cost for his or her territory, but an indirect cost for the product sold 
D)  Advertising is a direct cost 
E)  A specific expense is much like a direct expense in that it can generally be identified with a wide range of products and functions

Question 11

EMI, a manufacturer of aluminum conveyor belts, allocates costs such as salaries, advertising, warehouse rent, office supplies, and travel expenses. EMI uses the _____ approach to marketing cost analysis.

Accepted Answer

A)  Contribution-margin 
B)  ROAM 
C)  Gross-margin 
D)  Full-contribution 
E)  Net profit 
A)  Contribution-margin 
B)  ROAM 
C)  Gross-margin 
D)  Full-contribution 
E)  Net profit

Question 12

Allocating costs by sales volume FAILS to:

Accepted Answer

A)  Achieve cost efficiency 
B)  Increase sales 
C)  Recognize the purpose of the cost incurred 
D)  Estimate the profit potential 
E)  Sum the allocated cost of functional responsibility 
A)  Achieve cost efficiency 
B)  Increase sales 
C)  Recognize the purpose of the cost incurred 
D)  Estimate the profit potential 
E)  Sum the allocated cost of functional responsibility

Question 13

Which of the following statements about marketing cost analysis is true?

Accepted Answer

A)  Marketing productivity focuses on the sales or profit output per unit of production input 
B)  The purpose of marketing cost analysis is to estimate customer relationships by territory, customer, and channel of distribution 
C)  When given a choice, sales managers prefer to use marketing cost analysis more than sales analysis for managing the sales function 
D)  Marketing cost analysis focuses on the results achieved to determine if the returns justify the expenditures 
E)  Any accounting system can be easily adapted to give the information needed for a marketing cost analysis 
A)  Marketing productivity focuses on the sales or profit output per unit of production input 
B)  The purpose of marketing cost analysis is to estimate customer relationships by territory, customer, and channel of distribution 
C)  When given a choice, sales managers prefer to use marketing cost analysis more than sales analysis for managing the sales function 
D)  Marketing cost analysis focuses on the results achieved to determine if the returns justify the expenditures 
E)  Any accounting system can be easily adapted to give the information needed for a marketing cost analysis

Question 14

Return on assets managed equals contribution of the asset as a percentage of sales multiplied by the inventory turnover rate.

Accepted Answer

A) True 
 B)False

Question 15

ROAM (return on assets managed) equals:

Accepted Answer

A)  Inventory turnover times the net profit 
B)  Accounts receivable plus inventories plus fixed assets divided by the contribution margin 
C)  Contribution as a percentage of sales times the asset turnover rate 
D)  The liquidity ratio divided by the turnover ratio 
E)  Number of salespeople divided by the number of sales each made 
A)  Inventory turnover times the net profit 
B)  Accounts receivable plus inventories plus fixed assets divided by the contribution margin 
C)  Contribution as a percentage of sales times the asset turnover rate 
D)  The liquidity ratio divided by the turnover ratio 
E)  Number of salespeople divided by the number of sales each made

Question 16

Wilton is assessing the lifetime value of his customers. As part of his analysis, he will most likely assess:

Accepted Answer

A)  The potential for new business 
B)  Current advertising costs 
C)  Past indirect sales costs 
D)  Time delay order processing 
E)  All of the above 
A)  The potential for new business 
B)  Current advertising costs 
C)  Past indirect sales costs 
D)  Time delay order processing 
E)  All of the above

Question 17

Sales managers are typically LEAST concerned with the profitability of:

Accepted Answer

A)  Regions 
B)  Customers 
C)  Divisions 
D)  Products 
E)  Salespeople 
A)  Regions 
B)  Customers 
C)  Divisions 
D)  Products 
E)  Salespeople

Question 18

What is the distinction between a cost and an expense?

Accepted Answer

A cost is often restricted to

Question 19

Which of the following is NOT one of the bases for profitability analysis?

Accepted Answer

A)  Products 
B)  Customers 
C)  Territories 
D)  Management 
E)  Salespeople 
A)  Products 
B)  Customers 
C)  Territories 
D)  Management 
E)  Salespeople

Question 20

Describe the four bases for sales profitability analysis? Why do firms tend to neglect profitability analysis.

Accepted Answer

The four bases for profitability analysi

Costs should be allocated according to a product's sales volume.

A(n) _____________ is a shared cost tied to several functions or products.

If they do profitability analysis, companies are most likely to do it for:

The cost of renting a warehouse to store component parts for making various sizes of electric generators is an example of a general expense.

In activity-based costing, the three informational components to the company are:

What are the four steps in conducting a marketing profitability analysis?

Accounting-based costing (ABC) identifies the cause-and-effect relationship between costs and desired organizational outcomes.

What activities are involved when doing marketing cost analysis?

A company that manufactures lighting fixtures wants to do a marketing cost analysis based on customer type (home owner, commercial, and institutional). Which of the following is the best example of a general expense?

Which of the following statements about how a manufacturer categorizes its costs and expenses is true?

EMI, a manufacturer of aluminum conveyor belts, allocates costs such as salaries, advertising, warehouse rent, office supplies, and travel expenses. EMI uses the _____ approach to marketing cost analysis.

Allocating costs by sales volume FAILS to:

Which of the following statements about marketing cost analysis is true?

Return on assets managed equals contribution of the asset as a percentage of sales multiplied by the inventory turnover rate.

ROAM (return on assets managed) equals:

Wilton is assessing the lifetime value of his customers. As part of his analysis, he will most likely assess:

Sales managers are typically LEAST concerned with the profitability of:

What is the distinction between a cost and an expense?

Which of the following is NOT one of the bases for profitability analysis?

Describe the four bases for sales profitability analysis? Why do firms tend to neglect profitability analysis.

Introduction to Sales Management in the Twenty-First Century

The Process of Selling and Buying

Linking Strategies and the Sales Role in the Era of Customer Relationship Management

Organizing the Sales Effort

The Strategic Role of Information in Sales Management Comprehensive Cases for Part One

Salesperson Performance: Behavior, Role Perceptions, and Satisfaction

Salesperson Performance: Motivating the Sales Force

Personal Characteristics and Sales Aptitude: Criteria for Selecting Salespeople

Sales Force Recruitment and Selection

Sales Training: Objectives, Techniques, and Evaluation

Salesperson Compensation and Incentives Comprehensive Cases for Part Two

Evaluating Salesperson Performance

Filters

Exam 12: Cost Analysis

Costs should be allocated according to a product's sales volume.

A(n) _____________ is a shared cost tied to several functions or products.

If they do profitability analysis, companies are most likely to do it for:

The cost of renting a warehouse to store component parts for making various sizes of electric generators is an example of a general expense.

In activity-based costing, the three informational components to the company are:

What are the four steps in conducting a marketing profitability analysis?

Accounting-based costing (ABC) identifies the cause-and-effect relationship between costs and desired organizational outcomes.

What activities are involved when doing marketing cost analysis?

A company that manufactures lighting fixtures wants to do a marketing cost analysis based on customer type (home owner, commercial, and institutional). Which of the following is the best example of a general expense?

Which of the following statements about how a manufacturer categorizes its costs and expenses is true?

EMI, a manufacturer of aluminum conveyor belts, allocates costs such as salaries, advertising, warehouse rent, office supplies, and travel expenses. EMI uses the _____ approach to marketing cost analysis.

Allocating costs by sales volume FAILS to:

Which of the following statements about marketing cost analysis is true?

Return on assets managed equals contribution of the asset as a percentage of sales multiplied by the inventory turnover rate.

ROAM (return on assets managed) equals:

Wilton is assessing the lifetime value of his customers. As part of his analysis, he will most likely assess:

Sales managers are typically LEAST concerned with the profitability of:

What is the distinction between a cost and an expense?

Which of the following is NOT one of the bases for profitability analysis?

Describe the four bases for sales profitability analysis? Why do firms tend to neglect profitability analysis.

Introduction to Sales Management in the Twenty-First Century

The Process of Selling and Buying

Linking Strategies and the Sales Role in the Era of Customer Relationship Management

Organizing the Sales Effort

The Strategic Role of Information in Sales Management Comprehensive Cases for Part One

Salesperson Performance: Behavior, Role Perceptions, and Satisfaction

Salesperson Performance: Motivating the Sales Force

Personal Characteristics and Sales Aptitude: Criteria for Selecting Salespeople

Sales Force Recruitment and Selection

Sales Training: Objectives, Techniques, and Evaluation

Salesperson Compensation and Incentives Comprehensive Cases for Part Two

Evaluating Salesperson Performance

Filters