At White Chemical Co

question 290

Multiple Choice

At White Chemical Co., management is examining its selling strategy and wants to acknowledge the role its sales staff has in undertaking sales support (non-selling) activities, yet keep the salespeople directed toward increasing sales for the next year. What advice is most likely to be appropriate here?

• A) Provide a base salary and a commission on sales generated.
• B) Give a raise to every salesperson as a motivational incentive.
• C) Provide year-end bonuses to reward the salesforce personnel who perform the best.
• D) Offer straight salaries and give raises if the sales go up.
• E) Offer straight commission and if sales improve, raise the commission rates.

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Definitions:

Installment Sales

The method of recognizing revenue where the payment is received over a period of time in installments, often used in real estate and high-priced consumer goods transactions.

Deduction

An expense that can be subtracted from gross income to reduce the amount of income subject to tax.

Revenue

The total income generated by the sale of goods or services related to a company's primary operations before any expenses are deducted.

Realized

Pertains to gains or losses that have been incurred as a result of actual transactions as opposed to those that are theoretical or projected.