Which of the following statements describes a disadvantage inherent in the straight commission compensation plan?
A) It gives sales reps little financial security
B) It provides sales managers with minimal control over their sales forces
C) It can cause sales reps to provide inadequate service to smaller accounts
D) It makes selling expenses less predictable
E) All of the above

Question

Quizplus · Accepted Answer

A) Straight commission compensation plan gives sales reps little financial security as their income depends entirely on their sales performance.
B) It provides sales managers with minimal control over their sales forces as the compensation is directly tied to sales performance, and the manager cannot influence it.
C) Sales reps may focus more on larger accounts that provide more commission and neglect smaller accounts that may need more attention as the compensation is directly tied to sales.
D) The selling expenses may vary as sales reps may have different levels of success in selling, leading to unpredictable expenses.

Which of the Following Statements Describes a Disadvantage Inherent in the Straight