If the sales organization objective is to minimize selling costs and clear out inventory, then the recommended compensation system is likely to be
A) salary plus commission or bonus.
B) salary plus sales-based incentives.
C) salary plus bonus.
D) salary.
E) commission.

Question

Quizplus · Accepted Answer

A salary-based compensation system is most suitable when the objective is to minimize selling costs and clear out inventory, as it does not directly tie pay to sales volume or profitability, allowing sales staff to focus on moving inventory efficiently without the pressure of earning commissions.

If the Sales Organization Objective Is to Minimize Selling Costs