If Arlene Wants to Motivate a High Level of Sales

question 4

Multiple Choice

If Arlene wants to motivate a high level of sales effort among her sales representatives, she should focus on:

• A) Commissions
• B) Draws
• C) Perks
• D) Benefits
• E) Expense accounts

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Definitions:

Period Costs

Expenses directly tied to non-manufacturing activities such as selling, administration, and general business operations, recognized in the income statement when incurred.

General Costs

General costs are indirect expenses related to the overall operations of a company that cannot be directly tied to a specific product or service, such as rent, utilities, and administrative salaries.

Indirect Materials

Materials used in the production process that do not directly become part of the finished product.

Manufacturing

The procedure of changing basic materials, components, or elements into end products that align with a customer’s needs or criteria.