Which of the following statements about limited reimbursement plans is true?
A) Firms on a limited reimbursement plan minimize the total amount of expense reimbursements by setting maximum limits for each expense item
B) Firms on a limited reimbursement plan minimize the total amount of expense reimbursements by providing lump-sum payments to cover total expenses
C) Of all the reimbursement plans, the limited plan is the best motivator
D) When on a limited reimbursement plan, the typical salesperson pays his or her expenses out of pocket rather than doing without
E) Both A and B

Question

Quizplus · Accepted Answer

Limited reimbursement plans involve setting maximum limits for each expense item (A) and providing lump-sum payments to cover total expenses (B), both of which help minimize total expense reimbursements.

Which of the Following Statements About Limited Reimbursement Plans Is