pg. 1 D099 WGU Sales Management Final Exam 2024 -2025 Test Bank Complete 500+ Actual Questions with Correct Verified Answers/ Graded A+
A vendor sells hot dogs and lemonade to people in their seats at a stadium and is compensated per unit sold. Which form of compensation does this represent?
- Profit sharing
- Standard salary
- Deferred compensation
- Piece-rate - Correct Answer – 4. Piece-rate
What is a potential negative effect of using individual incentive systems with salespeople?
- Lower levels of individual performance
- Increased competition in targeting clients
- Higher turnover rates for existing clients
- Reduced levels of customer prospecting - Correct Answer – 2. Increased
competition in targeting clients
A pharmaceutical sales manager has decided to conduct a sales contest and reward its top salesperson for the upcoming quarter with an all-expense paid trip to Hawaii. Which component of the firm's sales compensation plan covers the associated expenses for this incentive?
- First in-first out
- Quota
- Salary
- Sales performance incentive fund - Correct Answer – 4. Sales performance
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incentive fund
pg. 2 A company needs to determine the cost of converting prospects to actual customers over a period of one year. Which type of ratio category should the company use for this purpose?
- Expense
- Account development
- Call activity
- Job knowledge - Correct Answer – 4. Expense
A sales manager wants to evaluate how a salesperson's characteristics have aided in closing sales. Which type of sales performance measurement is being used?
- Subjective
- Objective
- Expense
- Benchmark - Correct Answer -1. Subjective
A manager and subordinate work together to establish relevant, quantitative performance goals. They then assess the extent to which these goals have been completed during the review period. Which performance evaluation method is being used by the manager?
- Management by objectives
- Critical incident technique
- Behaviorally anchored rating scale
- Subjective performance measures - Correct Answer – 1. Management by
objectives
A manager is trying to base an employee's rating on the entire evaluation period rather than focusing on the last two months of the year. Which performance appraisal problem is the manager trying to avoid?
- Central tendency error
- Halo effect
- Recency error
- Personal bias - Correct Answer – 3. Recency error
A sales manager meets with a salesperson to establish goals and expected outcomes for the upcoming sales cycle. The salesperson leaves the meeting 2 / 4
pg. 3 understanding how performance will be evaluated. Which approach is the sales manager using for this performance appraisal?
- Management by objectives
- Behavioral observation scales
- Behaviorally anchored rating scales
- Critical incident technique - Correct Answer – 1. Management by objectives
A sales manager is designing a commission structure for sales team members.The commissions will be based on each salesperson's monthly sales less variable expenses. Which income statement is the basis for the sales commission structure?
- Contribution margin
- Full costing
- Traditional
- Balance sheet - Correct Answer – 1. Contribution margin
A sales manager explains to the chief executive officer (CEO) that they can reduce costs by outsourcing the sales of the product. Which loss should concern the CEO if this change is approved?
- Control
- Market access
- Buyers
- Production - Correct Answer – 1. Control
A sales manager wants to improve the return on assets managed and assumes that the profit margin will remain constant. Which action should the sales manager take?
- Increase its asset turnover rate
- Decrease its account development rate
- Decrease its use of quotas for salespeople
- Increase its focus on transactional selling - Correct Answer – 1. Increase its asset
turnover rate
A sales manager applies a costing method that is focused on reporting all direct costs associated with product sales for internal financial reporting. Which costing method is the sales manager using? 3 / 4
pg. 4
- Activity-based
- Full product
- Contract
- Job - Correct Answer -1. Activity-based
Managers in a company are evaluating external and internal factors in order to develop the sales plan. Which level of decision-making are the managers performing?
- Tactical
- Strategic
- Executive
- Programmed - Correct Answer – 2. Strategic
A company fails to meet current annual sales goals. The sales manager is tasked with developing a plan to increase sales without incurring additional costs. Which solution should this sales manager choose?
- Offering customer discounts
- Focusing on product customization
- Creating new products
- Upselling prospective customers - Correct Answer – 4. Upselling prospective
customers
What is an advantage of using customer surveys as a means to collect data for forecasting and quota development?
- It provides detailed user information.
- It involves inexpensive data collection.
- It generates rich data for consumer goods.
- It collects generically valuable information. - Correct Answer – 1. It provides
detailed user information.
What is a disadvantage of using the Delphi method as a means to collect data for forecasting and quota development?
- Possibility of a dominating voice
- Time consuming in generating results
- Prevalence of argumentative discussion
- Discouragement in equal participation by introverts - Correct Answer 2. - Time
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consuming in generating results