Regarding the methods of compensating a sales force:
A)The commission method provides the best opportunity for controlling sales representatives' activities.
B)A bonus can be combined with a salary,but not with a commission plan.
C)Compensation plans should not be mixed with plans for motivating and supervising a sales force.
D)It is a mistake to try to combine security and incentive in the same plan.
E)None of these is correct.

Question

Quizplus · Accepted Answer

None of these statements are entirely correct. A commission plan can motivate sales reps to focus on high-profit items, but may not encourage them to develop customer relationships. A bonus can be combined with either a salary or a commission plan. Compensation plans should be designed to align with motivation and supervision goals. Incentives and security can be combined in a plan that balances short-term motivation and long-term stability.

Regarding the Methods of Compensating a Sales Force