Which of the following statements about the economic criteria used to decide between using an independent agent or an internal sales force is true?
A) The fixed costs of using independent agents are lower than those of using a company sales force
B) The variable costs of using independent agents do not change over time
C) The variable costs of using independent agents are equal to the variable costs expended on an internal sales force
D) In terms of cost efficiency, an internal sales force is always more expensive than independent agents
E) The costs of using independent agents tend to level off as sales volumes increase

Question

Quizplus · Accepted Answer

Independent agents typically have lower fixed costs compared to an internal sales force because they are not on the company's payroll and do not require the same level of investment in training, benefits, and infrastructure.

Which of the Following Statements About the Economic Criteria Used