Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Vincent is currently handling a team of 15 people and he seems to manage them very well. He is a manager of a retail company

Vincent is currently handling a team of 15 people and he seems to manage them very well. He is a manager of a retail company located in the heart of the city. One of the things that he wants to make sure of is that his employees should be financially stable and have a freedom from financial uncertainties. This is called Straight-Salary Plan. Which among the following is the incentive plan's weakness? Select one: a. Salespeople do only an average rather than an outstanding job. b. Sales personnel push the easiest-to-sell low margin items and neglect harder -to sell high -margin items. c. There are risks that the plan will become complicated and that sales personnel will not understand it. d. It provides little financial control over sales people's activities, a weakness further compounded when they pay their own expenses

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian Edition

1119497043, 978-1119497042

More Books

Students also viewed these Accounting questions