A regressive rate of sales commission is consistent with the idea that:
A)The first sale is easy to get,but reorders are difficult to sell.
B)Reorders bring in a higher rate of profit than initial orders.
C)A guaranteed drawing account is used.
D)The company has the problem of split commissions.
E)Reorders come frequently and inexpensively,but the initial order is hard to get.

Question

Quizplus · Accepted Answer

A regressive rate of sales commission means that the commission rate decreases as the sales amount increases. This is consistent with the idea that initial orders are hard to get and thus might be rewarded more, whereas reorders, being easier and less costly to secure, come with a lower commission rate.

A Regressive Rate of Sales Commission Is Consistent with the Idea