Clay Works for a Local Car Dealership as a Salesperson

question 28

Multiple Choice

Clay works for a local car dealership as a salesperson and earns 3% on every car he sells as his incentive plan and he receives no other compensation. This is an example of a:

• A) straight commission plan.
• B) straight salary plan.
• C) mixed salary/commission plan.
• D) straight piecework plan.
• E) differential piecework plan.

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Definitions:

Job Evaluation Manuals

Written guides that provide a systematic approach to determining the relative worth of jobs within an organization by outlining criteria, methodologies, and procedures.

External Service Provider

An outside company or individual that offers a specific service to an organization, often in areas where the organization lacks expertise or resources.

Compensation Costs

The total expenses incurred by an employer to provide wages, salaries, and benefits to employees.

Budgeted Costs

The estimated financial expenditure allocated for specific purposes during a predetermined timeframe.