When deciding which form of expense reimbursement to use, sales managers must make trade-offs between tight control aimed at holding down total expenses and the financial well-being of salespeople.

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Sales managers have to balance the need for controlling expenses with the need to ensure that their salespeople are financially motivated to perform well. Tight control can result in demotivating sales staff, while generous reimbursement policies can drive up expenses.

When Deciding Which Form of Expense Reimbursement to Use, Sales