Regarding Sales Force Expense Control Plans,it Is Correct to Say

question 3

Multiple Choice

Regarding sales force expense control plans,it is correct to say that:

• A)Closely supervised salespeople typically are placed under an unlimited payment plan.
• B)The transportation method used by the sales force can affect the amount of expenses paid,but is not related to the type of expense control plan.
• C)The type of compensation plan used by a company often has a bearing on the type of expense control plan.
• D)The nature of the territories typically has little or no effect on the expense plan.
• E)None of these is correct.

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Definitions:

Sales Dollars

Sales dollars refer to the total monetary value of all sales transactions made by a company over a period, without deducting any costs or expenses.

Break-Even Point

The sales level at which a business generates revenue equal to its expenses, resulting in neither profit nor loss.

Variable Costs

Financial obligations that shift depending on the level of manufacturing or sales activity.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, like lease payments and wages.