A disadvantage of a straight commission compensation plan is that
A. it provides incentive to expand sales volume.
B. the overall compensation is usually lower than a straight salary compensation plan.
C. it can discourage salespeople from providing customer service.
D. it is difficult to administer.
E. it includes nonselling activities that take time away from selling.
Answer: C
You might also like to view...
The goal of reporting realistic figures and never overstating assets or net income applies to the ________.
A) conservatism principle B) materiality concept C) disclosure principle D) consistency principle
Which one of the following types of assets should not be classified as property, plant, and equipment?
A) leasehold improvements B) fully-depreciated building (still in use) C) idle land and buildings D) long-lived tangible assets
Proper segregation of duties requires that the responsibility approving a payment be separated from posting to the cash disbursements journal
Indicate whether the statement is true or false
An instrument states, "Subject to Approval of Title, Pay to the Order of Yvette, $3,000." Is the instrument negotiable?
What will be an ideal response?