CSCP Territory & Quota Design

Question 1

Which method of quota setting bases individual quotas on the historical sales results of each representative adjusted for expected market growth?

Accepted Answer

Bottom-up quota setting

Answer

Bottom-up quota setting starts with individual rep history and adjusts for anticipated growth, making it rep-specific and data-grounded.

Question 2

When a company divides its total revenue target among regions and then down to individual reps, this approach is called:

Accepted Answer

Top-down quota allocation

Answer

Top-down quota allocation begins with the corporate revenue goal and cascades it downward through regions, districts, and individual reps.

Question 3

A 'balanced territory' in sales compensation design primarily aims to:

Accepted Answer

Equalize workload and market opportunity across reps

Answer

Balanced territories are designed so that each rep has a comparable workload and revenue opportunity, enabling fair quota attainment comparisons.

Question 4

Which of the following is the BEST leading indicator of territory potential when designing new sales territories?

Accepted Answer

Total addressable market (TAM) within the territory

Answer

Total addressable market represents the maximum revenue opportunity available, making it the best forward-looking indicator of territory potential.

Question 5

What is the primary purpose of applying a 'seasonality adjustment' to sales quotas?

Accepted Answer

To align quota timing with natural buying cycles in the market

Answer

Seasonality adjustments distribute quota across the year in proportion to when customers naturally buy, making each period's target fair and realistic.

CSCP - Certified Sales Compensation Professional Practice Test

CSCP - Certified Sales Compensation Professional Practice Test

CSCP Territory & Quota Design