Which of the Following Statements About Salesperson Compensation Is FALSE

question 41

Multiple Choice

Which of the following statements about salesperson compensation is FALSE?

• A) Commissions reduce the need for working capital.
• B) Incentives must be carefully aligned with the firm's objectives.
• C) Compensation plans should be clear.
• D) Sales managers must plan, implement, and control.
• E) None of these alternatives is FALSE.

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Definitions:

Cost Drivers

Factors that cause the cost of an activity or process to change, used in strategic management to control and reduce costs.

Volume

The quantity of something, often used to refer to the total amount of stocks or contracts traded in a financial market.

Departmental Overhead Rate

A rate used to allocate indirect costs to products or services, calculated separately for each department within an organization.

Mixing Department

A section within a manufacturing facility where raw materials are combined or processed together to create a product or a component of a product.