Improperly Structured Sales Force Incentives

question 48

Multiple Choice

Improperly structured sales force incentives

• A)help create stable demand.
• B)have very little effect on the timing of customer orders.
• C)tend to create spikes in customer orders.
• D)ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.

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Definitions:

Labour Hours

Refers to the total amount of work time spent by employees, including both direct and indirect labor activities.

Facility-sustaining Activities

Costs and activities associated with maintaining a manufacturing or production facility at an operational status, independent of the actual levels of production.

Batch-level Activities

Operations and tasks performed for a group of units produced as a single batch, costing is aggregated at the batch level.

ABC

Activity-Based Costing, a method of allocating costs to products or services based on the resources they consume.