An incentive plan model for accurate reporting should not have which of the following components?
A)it relates rewards positively to forecasted sales.
B)it provides incentives for the sales manager to increase sales beyond the forecast.
C)it penalizes the sales manager when sales are less than forecasted.
D)it penalizes the sales manager when sales are more than forecasted.

Question

Quizplus · Accepted Answer

Penalizing the sales manager when sales are more than forecasted can discourage accurate reporting as the sales manager may be motivated to underreport actual sales to avoid penalties.

An Incentive Plan Model for Accurate Reporting Should Not Have