Management Is Considering Replacing an Existing Sales Commission Compensation Plan

question 72

Multiple Choice

Management is considering replacing an existing sales commission compensation plan with a fixed salary plan.If the change is adopted,the company's

• A)break-even point must increase.
• B)margin of safety must decrease.
• C)operating leverage must increase.
• D)profit must increase.

---

Definitions:

Ego

In psychoanalytic theory, the part of the psyche that mediates between the primal desires of the id and the moral demands of the superego.

Problem-Solving Skills

The ability to identify, define, and resolve problems through the application of appropriate strategies and critical thinking.

Cognitive

Relating to mental processes such as perception, memory, thinking, and problem-solving.

Psychodynamic Perspective

A theory in psychology that emphasizes unconscious psychological processes and contends that childhood experiences are crucial in shaping adult personality.