An advantage of the straight salary plan for compensating salespeople is that it:
A)Has no administrative problems.
B)Is good for providing stability of income to a salesperson during the developmental stage of a territory or product.
C)Enables management to reduce the amount of field supervision.
D)Provides a direct relationship between sales volume and salary expense.
E)Offers a sales rep much freedom of operation.

Question

Quizplus · Accepted Answer

The straight salary plan provides stability of income to a salesperson during the developmental stage of a territory or product. Since the compensation is not tied to sales performance, the salesperson can focus on building relationships and gaining knowledge without worrying about fluctuating income. However, it may not provide the same incentive for higher sales performance as other compensation plans that are tied to sales volume.

An Advantage of the Straight Salary Plan for Compensating Salespeople