Compensation Plans for Salespeople Have Typically Relied Heavily on Incentives

question 47

Multiple Choice

Compensation plans for salespeople have typically relied heavily on incentives in the form of

• A)profit sharing.
• B)stock appreciation rights.
• C)gainsharing.
• D)sales commissions.
• E)stock options.

---

Definitions:

Fixed Costs

A type of business expense that remains constant regardless of changes in production volume or sales, such as lease payments and utility bills.

Transportation Costs

Expenses associated with the movement of goods or materials from one location to another, including fuel, labor, and vehicle maintenance costs.

Flexibility

Flexibility in a business context refers to the ability to adapt quickly to changes in the market or operational conditions, maintaining efficiency and meeting customer demands.

Supply Chain

The network of individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from supplier to customer.