In the Design of a Compensation Plan,a Factor Over Which

question 23

Multiple Choice

In the design of a compensation plan,a factor over which a sales rep has some control,but which cannot be measured objectively is:

• A)Orders from new accounts.
• B)Gross margin by product line.
• C)Number of product demonstrations made.
• D)Number of shelf and window displays obtained.
• E)Customer goodwill developed toward company.

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Definitions:

Accrue Interest Expense

The recording of interest expense that has been incurred but not yet paid, typically on borrowed funds.

Financial Statements

These are formal records that outline the financial activities and condition of a business, entity, or individual.

Net Income

The final profit figure for a company, calculated by subtracting all expenditures and taxes from revenues.

Total Liabilities

The combined debts and obligations that a company owes to outside parties at any given time.