An incentive plan model for accurate reporting should have which of the following component(s)?
A)it relates rewards positively to forecasted sales.
B)it provides incentives for the sales manager to decrease sales beyond the forecast.
C)it penalizes the sales manager when sales are more than forecasted.
D)none of the above

Question

Quizplus · Accepted Answer

The incentive plan model should reward the sales manager for accurate reporting, which can be achieved by positively relating rewards to forecasted sales. B and C are not appropriate components as they would incentivize the sales manager to manipulate sales in a way that is not beneficial for the company. Therefore, the correct answer is A.

An Incentive Plan Model for Accurate Reporting Should Have Which