Salesforce Certified CPQ Specialist Practice

What does the Contract object in Salesforce CPQ primarily manage?

1. Product inventory and supply chain logistics

2. Agreements for subscription products and their renewals

3. Customer feedback and service requests

4. Employee performance and commissions

The correct answer is: Agreements for subscription products and their renewals

The Contract object in Salesforce CPQ primarily manages agreements for subscription products and their renewals. This is essential for organizations that offer subscription-based services, as it allows them to track the terms of agreements over time. The Contract object holds vital information such as start and end dates, renewal terms, and pricing details related to the subscription. This functionality ensures companies can efficiently manage their recurring revenue, monitor contract compliance, and facilitate timely renewals or adjustments based on changing customer needs. In the context of the other options, product inventory and supply chain logistics are typically handled by different objects focused on inventory management rather than contracts. Customer feedback and service requests are generally managed through other Salesforce objects designed for customer service rather than contractual agreements. Employee performance and commissions are often overseen by HR management systems or dedicated performance management tools, not through the Contract object, which is focused on agreements between the organization and its customers.