CHAPTER 12

Cost Analysis

LEARNING OBJECTIVES

Many students of sales and marketing like to focus on the revenue side. They migrate to sales positions because making things happen is an essential function of creating business. But costs are important, too, and managing costs carefully is often the difference between a thriving business and one that struggles to exist.

After completing this chapter, you should be able to:

  • Select the appropriate cost allocation method for various sales management situations.
  • Describe how such methods would be implemented.
  • Discuss the importance of return on assets managed (ROAM) and be able to calculate ROAM.
  • Apply financial cost analysis to sales management situations in order to make decisions.

UNDERSTANDING ...

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