Profit sharing should not be a significant part of a sales compensation plan,because profit:
A)Is not sufficiently controllable by the reps.
B)Cannot be measured objectively.
C)Fluctuates too much.
D)Provides no incentive for the reps.
E)Greatly reduces management's ability to control the sales force activities.

Question

Quizplus · Accepted Answer

Profit is influenced by many factors beyond the control of sales representatives, such as production costs and market conditions, making it an unreliable metric for their compensation.

Profit Sharing Should Not Be a Significant Part of a Sales