Which of the following statements about incentive pay ceilings is true?
A) Incentive ceilings can be used to protect against windfalls
B) Incentive ceilings make a firm's maximum potential sales compensation expense more predictable and controllable
C) Firms in relatively low paying industries are more likely to impose incentive ceilings than those in high-paying industries
D) Incentive ceilings are used to ensure that top-performing salespeople will not make such high earnings that other employees suffer resentment and low morale
E) All of the above statements about incentive ceilings are true

Question

Quizplus · Accepted Answer

All of the statements about incentive ceilings are true. Incentive ceilings can protect against windfalls, make a firm's maximum potential sales compensation expense more predictable and controllable, are more likely to be imposed by firms in low-paying industries, and can be used to ensure that high-earning salespeople do not create resentment among other employees.

Which of the Following Statements About Incentive Pay Ceilings Is