Most Compensation Plans Credit a Salesperson with a Sale

question 28

Multiple Choice

Most compensation plans credit a salesperson with a sale:

• A) When the order is accepted by the company, less any returns and allowances
• B) After payment is received from the customer
• C) Only after the goods have been shipped
• D) In a combined manner, where one-half of the sale is assigned when the order is received and the other half when the customer pays
• E) In a variety of ways, with no one way being more popular than any other

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Definitions:

Cost Center

A division or department within an organization that does not directly contribute to profits but incurs costs, such as customer service or research and development departments.

Profit Center

A division or segment of a company that is directly responsible for generating its own revenue and profits.

Decentralized Operations

A management approach where decision-making processes are distributed among various levels within the organization, rather than being concentrated at the top.

Strategic Planning

Developing long-term actions to achieve a company’s objectives.