Sales cost and cost analysis
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A sales audit systematically reviews a company's sales objectives, policies, organization, methods, procedures, and personnel to ensure they are properly implemented and achieving their goals. It examines six main aspects of the selling operation. Sales analysis studies sales volume in detail to identify strengths and weaknesses, including allocation of sales effort and data used. Marketing cost analysis relates sales volume to selling expenses to determine the relative profitability of different sales operations by classifying expenses and calculating contribution margin.
Sales cost and cost analysis
- 1. Sales Audit: It is a systematic, critical, and unbiased review and appraisal of the basic objectives and policies of the selling function and of the organization, methods, procedures, and personnel employed to implement those policies and achieve objectives. Sales audit examines six main aspects of selling operations: 1. Objectives 2. Policies 3. Organization 4. Methods 5. Procedures 6. Personnel
- 3. Sales Analysis Sales analysis is a detailed study of sales volume performance to detect strengths and weaknesses. Procedure:- 1. Allocation of sales effort 2. Data for sales analysis 3. Illustrative Sales analysis
- 4. Marketing Cost Analysis Marketing cost analyzes sales volume and selling expenses to determine relative profitability of particular aspects of sales operations. Techniques: 1. Classifying selling expenses. 2. Converting accounting expense data to activity expense groups. 3. Bases for allocating common expenses. 4. Contribution margin