Which of the Following Statements Does NOT Describe an Advantage

question 34

Multiple Choice

Which of the following statements does NOT describe an advantage inherent in the straight salary compensation plan?

• A) It directly relates selling expenses to sales resources
• B) It provides sales reps with the maximum amount of security
• C) It is easy to administer
• D) It yields more predictable selling expenses
• E) It gives sales managers a large amount of control over sales reps

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Definitions:

Predetermined Manufacturing Overhead Rates

A rate used to allocate manufacturing overhead costs to products based on a standard cost, established in advance of production.

Total Controllable

Relates to the expenses or costs over which a manager or business has direct control.

Volume Overhead Variances

The differences between the expected fixed overhead costs and the actual fixed overhead allocated, based on the volume of production.

Optimum Standards

Ideal benchmarks set for performance, quality, or efficiency that are considered best under the given conditions.