Which of the Following Statements Does NOT Describe an Advantage

question 34

Multiple Choice

Which of the following statements does NOT describe an advantage inherent in the straight salary compensation plan?

• A) It directly relates selling expenses to sales resources
• B) It provides sales reps with the maximum amount of security
• C) It is easy to administer
• D) It yields more predictable selling expenses
• E) It gives sales managers a large amount of control over sales reps

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Definitions:

Sales Revenue

The income received by a company from selling goods or services before any costs or expenses are subtracted.

Credit

The trust which allows one party to provide resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources at a later date.

Goods Received

The receipt of goods ordered by a company, often documented with a goods received note (GRN) that verifies the delivery and details of the goods.

Bad Debt Expense

Money that is not recoverable from debtors and is considered a loss for the business because it is uncollectable.