Which of the following statements describes a significant drawback associated with the use of a straight commission compensation plan?
A) Management will find it more difficult to control the activities of sales people being paid using a . straight commission plan than with other means of compensation.
B) With a salary-only plan, the money paid to sales people for performing their job becomes a fixed expense.
C) Sales people being paid a straight commission tend to spend too much of their time on nonselling activities.
D) Straight commissions do not motivate sales people to sell as well as other compensation plans.
E) Straight commission plans offer excessive nonfinancial incentives for sales people to sell.
Correct Answer:
Verified
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