_____ Are the Most Commonly Used Method of Sales Force

question 12

Multiple Choice

_____ are the most commonly used method of sales force compensation.

• A) Straight salary plans
• B) Commission plans
• C) Combination plans
• D) Margin only plans
• E) Discount plans

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Definitions:

Variable Factory Overhead

Expenses in a factory that vary with the level of production output, such as utility costs and materials.

Fixed Costs

Expenses that do not change with the level of production or sales over the short term, such as rent or salaries.

Direct Labor

This refers to the wages and other costs for labor directly involved in the production of goods or the provision of services, not including indirect labor costs such as maintenance.

Differential Profit

The difference in profit between two alternative decisions or time periods.