An expense control plan that sets selling expenses as a percentage of sales will encourage the development of new territories.

Question

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A plan that sets selling expenses as a percentage of sales can actually discourage the development of new territories, as it may limit the amount of resources allocated to these efforts. Organizations may need to invest more in selling expenses for new territories in order to establish a presence and generate sales. Therefore, a more effective expense control plan should consider the specific needs and goals of the organization, rather than relying solely on a percentage of sales metric.

An Expense Control Plan That Sets Selling Expenses as a Percentage