An advantage of the straight salary plan for compensating salespeople is that it:
A)Offers considerable incentive for the salespeople.
B)Provides a direct relationship between sales and expenses.
C)Is good for a financially weak company.
D)Helps management to control salespeople's activities.
E)Does not provide security,so the reps will work harder.

Question

Quizplus · Accepted Answer

The straight salary plan allows management to have more control over salespeople's activities because their compensation is not directly tied to the volume of sales they make. This can encourage salespeople to focus on activities that align with the company's strategic goals, such as customer service and long-term relationship building, rather than just short-term sales figures.

An Advantage of the Straight Salary Plan for Compensating Salespeople