Which of the following is a reason why some firms do not use commission pay?
A)It gives workers incentive to produce more.
B)It increases firm profits.
C)It is difficult to measure the output and attribute output to a particular worker.
D)The best workers stay and less productive workers leave.

Question

Quizplus · Accepted Answer

Commission pay is based on the amount of output produced, but it can be difficult to measure and attribute the output to a particular worker. This can create fairness issues and make it challenging to determine appropriate commission rates. As a result, some firms opt for alternative forms of compensation that are easier to measure and administer.

Which of the Following Is a Reason Why Some Firms