Sales Process

Question 1

Sales =…

Answer 1

Price x quantity

Question 2

Sales process or revenue cycle in general

Answer 2

If trade organisation to check units sold :
Starting inventory + purchases - ending inventory = cost of goods sold

Production org= starting inventory + production - ending inventory = sales

Question 3

Completeness of revenues

Answer 3

All revenues generated by an organisation must be accounted for

Question 4

Value chain

Answer 4

Segregation of duties betweenall elements of value chain

For chain to be effective

Question 5

Typical information needs

Answer 5

Revenues for product categories, customer categories, regions

Market share

Gross margins

Customer satisfaction

Orders accepted but not delivered

Question 6

Steps in sale process

Answer 6

Determining product range and prices (authorised by management ) (most important)

Order entry

Credit approval (Customer has enough credit ?)

checking level of inventory

Billing

Shipping

(In order from top to bottom)

Question 7

Risks for the sale process

Answer 7

Accuracy of prices

Accuracy of discounts granted

Completeness of the recorded revenues

Shop within a shop

Loss of goods / products / materials through theft, decay, inefficiency etc. That otherwise could have been sold