CSCP Territory & Quota Design 2

Question 1

What does a 'quota attainment distribution' analysis reveal to a compensation designer?

Accepted Answer

Whether quotas are set at appropriate difficulty levels across the team

Answer

The total compensation cost of the sales force

Answer

Which sales reps should be promoted to management

Answer

The accuracy of CRM opportunity forecasts

Question 2

The 'hockey stick' problem in quota attainment refers to:

Accepted Answer

A pattern where most sales close at the very end of the quota period

Answer

Reps who consistently exceed quota by large margins

Answer

Territories shaped like a hockey stick on a map

Answer

Quota curves that accelerate too steeply in higher tiers

Question 3

When assigning named accounts to territories, which criterion is MOST important for ensuring plan fairness?

Accepted Answer

Consistency of account potential value across territories

Answer

Alphabetical order of account names

Answer

Proximity of the account to the rep's home

Answer

The tenure of the sales representative

Question 4

Which quota-setting approach is MOST appropriate for a newly launched product with no historical sales data?

Accepted Answer

Market potential and activity-based estimates

Answer

Historical trend analysis

Answer

Bottom-up rep input

Answer

Prior-year average attainment

Question 5

A 'geographic territory' differs from a 'vertical territory' primarily in that:

Accepted Answer

Geographic territories are defined by physical location while vertical territories are defined by industry or account type

Answer

Geographic territories are based on industry segment while vertical territories are based on location

Answer

Only geographic territories can have quotas attached

Answer

Vertical territories always have larger revenue potential

Question 6

What is 'quota relief' in the context of territory transitions?

Accepted Answer

A temporary reduction in quota to account for lost productivity during rep or territory changes

Answer

Eliminating quota requirements for senior sales reps

Answer

Increasing quota to compensate for larger territories

Answer

A bonus paid when a rep exceeds quota

Question 7

Which of the following BEST describes 'overlay quota' in a sales compensation plan?

Accepted Answer

A secondary quota assigned to a specialist or overlay rep who supports field reps on specific products

Answer

A quota that is applied on top of base salary calculations

Answer

A quota that overlaps two fiscal quarters

Answer

A quota penalty applied when reps miss targets