Which of the Following Is Most Likely a True Statement

question 123

Multiple Choice

Which of the following is most likely a true statement about sales compensation in economically tough circumstances?

• A) Cutting sales force compensation is usually a last resort for firms that want to maintain positive customer relationships.
• B) Morale is boosted by distributing commissions equally among low and high sales performers.
• C) Online selling is discontinued to improve customer relations.
• D) Compensation for the inside sales force is reduced to increase commissions for the outside sales force.
• E) Low performers are retained and top performers are dismissed to reduce commission payments.

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Definitions:

Unit-level Activity

Tasks or operations that vary with the number of units produced, such as assembling or packaging.

Resource Consumption

The amount of resources used during a process, such as raw materials, energy, or labor.

Activity Rate

The cost incurred per unit of activity, used in activity-based costing to allocate overhead costs to products.

Overhead Cost

Expenses related to the operation of a business that are not directly tied to a specific product or service, such as rent, utilities, and administrative salaries.