Question

What kind of information would a manager get from monitoring his Sales discounts and Sales R&A? How would his decision making be affected?

Answer 1

Monitoring sales discounts will help in knowing the performance of discounts and knowing the sales strategy success. Growth in sales due to issuing discounts will be monitored.

Sales return and allowances tell that how much manager has to adjust the price or how much sales failure is there. Sales return tell how many sales are turned back due to defect or not meeting certain standards and allowances is the price reduction due to not meeting certain standards and sending goods.

Easier sales return and allowances will give better sales and more people to trust the manager in doing business.

His decision making would be affected by sales discount whether to keep discounts, to increase/decrease it. Sales discounts leading to increased sales will be supported and continued.

Sales R&A will help him in knowing where the quality of sales lack behind and he should focus on quality control costs to have less Sales R&A.