CSCP Territory & Quota Design 3

Question 1

What is the recommended minimum percentage of the sales force that should attain quota in a well-designed compensation plan?

Accepted Answer

60-70%

Answer

25-35%

Answer

40-50%

Answer

85-95%

Question 2

Which territory design principle states that territories should be structured so that a single rep can realistically cover all accounts within their territory?

Accepted Answer

Workload manageability

Answer

Market potential equity

Answer

Geographic compactness

Answer

Revenue maximization

Question 3

A company notices that 20% of its reps are consistently attaining over 150% of quota. This MOST LIKELY indicates:

Accepted Answer

Quotas are set too low for high-performing territories

Answer

The incentive accelerators are too steep

Answer

The sales force is exceptionally talented

Answer

Commission rates need to be reduced

Question 4

What is the purpose of a 'shadow accounting' period when launching a new territory or quota plan?

Accepted Answer

To run the new plan in parallel with the old plan before fully transitioning reps

Answer

To hide compensation expenses from the income statement

Answer

To secretly track rep performance without their knowledge

Answer

To delay quota assignment until mid-year

Question 5

Which factor is considered MOST critical when evaluating whether a territory realignment is necessary?

Accepted Answer

Significant shifts in market potential, customer base, or rep headcount

Answer

Number of competitor sales reps in the area

Answer

Changes in the company's marketing messaging

Answer

Annual increases in product pricing

Question 6

In a 'matrix territory' structure, accounts may be jointly owned by multiple reps. This structure is designed to:

Accepted Answer

Support complex enterprise accounts that require multiple selling roles

Answer

Eliminate the need for individual quotas

Answer

Reduce total sales compensation costs

Answer

Prevent any single rep from earning too much commission

Question 7

When using a 'regression analysis' to set quotas, what is the independent variable most commonly used?

Accepted Answer

Market potential or opportunity score for the territory

Answer

Prior year rep tenure

Answer

Rep base salary level

Answer

Number of accounts in the territory