Which of the following is not a reason for firms to choose a salary system rather than a commission system to compensate their employees?
A)Research has shown that most companies will find that a salary system will be more profitable than a commission system.
B)It is often difficult to attribute output to particular workers.
C)If workers are paid on the basis of the number of units of output they produce, they may become less concerned about quality.
D)Commission compensation systems are riskier for employees than a salary system, and many workers dislike risk.

Question

Quizplus · Accepted Answer

The statement "Research has shown that most companies will find that a salary system will be more profitable than a commission system" is false, as it varies from company to company and the nature of the work being performed. The other options are all valid reasons for firms to choose a salary system over a commission system.

Which of the Following Is Not a Reason for Firms