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UP4-5 (Revenue recognition policy and sales targets) Suppose that you are the vice-president in charge of marketing and sales in a large company. You want
UP4-5 (Revenue recognition policy and sales targets) Suppose that you are the vice-president in charge of marketing and sales in a large company. You want to boost sales, so you have developed an incentive plan that will provide a bonus to the salespeople based on the revenue they generate. At what point would you recommend that the company count a sale toward the bonus plan: when the salesperson generates a purchase order, when the company ships the goods, or when the company receives payment for the goods? Explain
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