Documente Academic
Documente Profesional
Documente Cultură
Contents
Sales Control-Meaning & definition
Types of Sales Control
Steps in designing a Sales Control
System
Sales Audit & its Aim
Cost Analysis-Meaning & Definition
Full Cost Approach
Contribution Margin Approach
2
Prime
Responsibility
Purpose of Control
Approaches
-Sales analysis
Market shares
analysis
Marketing
expenses to sales
ratio
Profitability control
Sales controller
Customer attitude
Tracking profitability
by
Product territory
Market share
Trade channel
Order size
Sales audit
4
Sales Audit
Sales audit is a comprehensive,
systematic, independent and periodic
examination of a companys
environment, objectives, strategies and
activities to determine problem areas
and opportunities and recommend a
plan of action to improve the companys
sales performance. The job of sales
audit is performed by a sales auditor.
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Modes of Conducting
Sales Audit
Sales Analysis
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The expenses reflect the other costs incurred in operating the business,
such as the cost of advertising and of maintaining branches.
A specific expense can be identified with a specific product or function.
Example If a product were eliminated the specific expense of the product
managers salary need not be incurred.
A general expense cannot be identified directly with a specific object of
profit measurement such as a territory, salesperson or product. Example,
Elimination of 1 product will not eliminate the salary of the Sales Manager.
The full cost approach says that all costs should be assigned and
somehow accounted for in determining the profitability of any
segment( territory, product, salesperson) of the business.
Under this approach, each unit bears not only its own direct costs but a
share of the companys cost of doing business, referred to as indirect
costs.
Profit or net income before taxes = sales cost of goods sold General
administrative & selling expenses
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Contribution Margin
Approach
This approach say that it is misleading to
allocate costs arbitrarily. Only those costs that
can be specifically identified with the segment
of the business should be deducted from the
revenue produced by the segment to determine
how well the segment is doing.
The contribution margin approach does not
distinguish where the costs are incurred but
rather simply whether they are variable or fixed.
Sales- Variable costs-Fixed costs= Net Profit or
Contribution Margin
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Numerical
Number of Calls
Number of
Orders
Units
Sold
Total
Sales
Cost of Goods
Sold
200
250
15,000
$750,000
$600,000
295
230
18,000
900,000
720,000
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Thank You
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