A producer of industrial valves and gauges has a sales force of 40 people who use their own cars to cover territories of various sizes in the western half of the United States.To reimburse these people for the use of their cars,the plan most equitable to both management and the sales force is:

Question

Quizplus · Accepted Answer

The Runzheimer Plan is a flexible allowance that reimburses sales reps for the actual cost of operating their vehicles, including fuel, maintenance, and depreciation. This plan is equitable to both management and the sales force because it ensures that sales reps are reimbursed for the actual cost of using their vehicles, while also providing management with a way to control costs.

A Producer of Industrial Valves and Gauges Has a Sales