An Unlimited Payment Plan for Controlling Sales Force Expenses

question 84

Multiple Choice

An unlimited payment plan for controlling sales force expenses:

• A)Is flexible so management can allow for cost differentials arising from variations in jobs or territories.
• B)Is not used very widely.
• C)Eliminates the need for salespeople to itemize their expenses.
• D)Eliminates expense account padding.
• E)Does None of these.

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Definitions:

Public Utilities

Companies that provide essential services like water, electricity, natural gas, and telecommunications to the public, often under government regulation.

Political Power

The ability to influence or outright control the behavior of people and institutions, often within a governmental context.

Economic Profit

The profit a company makes after accounting for both its explicit and implicit costs, differing from accounting profit by considering opportunity costs.

Marginal Revenue

The additional income earned from the sale of one more unit of a product or service.