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Accounting for Decision Making and Control 7th Edition by Jerold Zimmerman
Edition 7ISBN: 978-0078136726Accounting for Decision Making and Control 7th Edition by Jerold Zimmerman
Edition 7ISBN: 978-0078136726 Exercise 28
Access.Com
Access.Com produces and sells software to libraries and schools to block access to Web sites deemed inappropriate by the customer. In addition, the software also tracks and reports on Web sites visited and advises the customer of other Web sites the customer might choose to block. Access.Com's software sells for between $15,000 and $20,000.
Three account managers (V J. Singh, A. C. Chen, and P. J. Martinez) sell the software and are paid a fixed salary plus a percentage of all sales in excess of targeted (budgeted) sales. Vice President of Marketing S. B. Ro sets the budgeted sales amount for each account manager. The following table reports actual and budgeted sales for the three account managers for the past five years.
Required:
a. Based on the data in the table, describe the process used by Ro to set sales quotas for each account manager.
b. Discuss the pros and cons of Access.Com's budgeting process for setting account managers' sales targets.
Access.Com produces and sells software to libraries and schools to block access to Web sites deemed inappropriate by the customer. In addition, the software also tracks and reports on Web sites visited and advises the customer of other Web sites the customer might choose to block. Access.Com's software sells for between $15,000 and $20,000.
Three account managers (V J. Singh, A. C. Chen, and P. J. Martinez) sell the software and are paid a fixed salary plus a percentage of all sales in excess of targeted (budgeted) sales. Vice President of Marketing S. B. Ro sets the budgeted sales amount for each account manager. The following table reports actual and budgeted sales for the three account managers for the past five years.
Required: a. Based on the data in the table, describe the process used by Ro to set sales quotas for each account manager.
b. Discuss the pros and cons of Access.Com's budgeting process for setting account managers' sales targets.
Explanation
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Budgeting
Budgeting is a process where ...
Accounting for Decision Making and Control 7th Edition by Jerold Zimmerman
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