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:

Facility Cost

The financial expenditure associated with the physical infrastructure of a business, including construction, maintenance, and utilities.

Processing Cost

The expenses involved in the operations required to process goods or services, including labor, materials, and overheads.

Standard Deviation

A measure of the dispersion or variation in a distribution or set of data, indicating how much individual data points differ from the mean.

Safety Inventories

Additional quantities of stock kept on hand to prevent out-of-stock situations due to uncertainties in supply or demand.