A limitation of the straight-commission method of paying a sales force is that this method usually:
A)Means that compensation expenses are a fixed cost.
B)Does not provide incentive for the sales representatives.
C)Attracts a poor caliber of sales representatives.
D)Makes it difficult to supervise and direct the activities of salespeople.
E)Discourages the sales representative from working long hours.

Question

Quizplus · Accepted Answer

The straight-commission method ties sales representatives' earnings directly to their sales performance, which can make it challenging for management to direct their activities towards non-sales tasks or strategic objectives, as their primary motivation is to maximize sales to increase their commission.

A Limitation of the Straight-Commission Method of Paying a Sales