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Management of a Sales Force, 11/e

Rosann Spiro, Indiana University
William J. Stanton, University of Colorado
Gregory A. Rich, Bowling Green State University

Sales Force Expenses and Transportation

Chapter 10 Multiple Choice Quiz


1	On average, a U.S. salesperson spends _________ per day on car, hotel, and meal expens
		A)	$15
		B)	$75
		C)	$115
		D)	$215
		E)	$515


2	The IRS allows businesses to deduct __________ of all business expenses.
		A)	0 percent
		B)	25 percent
		C)	50 percent
		D)	75 percent
		E)	100 percent


3	Characteristics of a sound expense plan include all of the following, except:
		A)	The plan should give reps the same net income working on the road as at home
		B)	The plan should pay all reps across the country the same dollar amount per expense item
		C)	The plan should be simple to administer
		D)	The plan should curtail padding
		E)	The plan should not hamper the performance of selling duties


4	Salespeople who are compensated by straight commission:
		A)	usually pay their own selling expenses
		B)	usually are on unlimited payment plans
		C)	usually are on a limited payment plan, reimbursed for each expense item
		D)	usually are on a limited payment plan, given a flat sum per day
		E)	None of the above


5	A reason why reps might prefer to pay their own expenses is that they:
		A)	have more freedom of operation
		B)	don't have to explain their expenses to management
		C)	gain income tax advantages
		D)	All of the above
		E)	None of the above - reps never prefer to pay their own expenses


6	The most widely used method of expense control is the:
		A)	Salespeople pay their own expenses plan
		B)	Unlimited-payment plan
		C)	Limited-payment - reimbursed for each expense item - plan
		D)	Limited-payment - given a flat sum per time period - plan
		E)	None of the above


7	The type of expense plan that offers the least incentive for reps to economize is:
		A)	Salespeople pay their own expenses plan
		B)	Unlimited-payment plan
		C)	Limited-payment - reimbursed for each expense item - plan
		D)	Limited-payment - given a flat sum per time period - plan
		E)	None of the above


8	Under the _______________ plan, the rep receives a bonus by keeping particular expense items under a specified amount.
		A)	per diem
		B)	Runzheimer
		C)	limited-payment
		D)	expense-quota
		E)	None of the above


9	The ________________ plan computes automobile expenses depending on the specific geographic region in which the rep works.
		A)	flexible allowance
		B)	runzheimer
		C)	fixed allowance
		D)	expense-quota
		E)	None of the above


10	High field-selling costs is one reason for the rapid expansion of:
		A)	Internet selling
		B)	Telemarketing
		C)	The use of unlimited-pay plans
		D)	Entertaining clients on golf courses
		E)	Both A and B are correct

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