Disadvantages of Paying Straight Salary Include All of the Following

question 15

Multiple Choice

Disadvantages of paying straight salary include all of the following except:

• A) not providing strong incentives for extra effort.
• B) they are fixed costs.
• C) they are a relatively insecure form of payment, as compared to commission.
• D) they overpay the least productive members of a sales team.
• E) new trainees may earn almost as much as experienced salespeople with much less productivity.

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Definitions:

Revenue Variance

The difference between a company's actual revenue and its expected or budgeted revenue during a specific period.

Spending Variances

Differences between budgeted and actual expenditures in various categories, often analyzed in budgeting to understand financial performance.

Patient-Visits

A metric used in healthcare management to quantify the number of times patients visit a healthcare facility.

Standard Cost

A predetermined cost of manufacturing, selling, and administrative activities, used as a benchmark to measure performance.