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The biggest drawback to fixed salary plans is: variable compensation costs to the company O employee insecurity lower employee motivation The boundary spanning characteristics of the sales job: forces the salesperson to be two-faced increases other employees' trust of salespeople encourages the use of incentives SPIFFs: O typically will last for one to two performance periods only typically are paid off in cash typically include travel awards How many measures of performance success should sales compensation plans use? O 3-5 5-7 at least 10 Which of the following is an advantage of using straight salaries for sales representatives? O provides more motivation makes salespersons more willing to perform non-sales duties makes salaries a variable cost, as opposed to a fixed cost a An accountable plan classifies travel reimbursement as: a business expense income to the employee deductions from the employee's income The best solution for paying an incentive for a multi-year contract is to: exclude the contract from quotas pay the salesperson an annuity give the salesperson a net present value payment based on the revenue from the contract A reason for having sales as a special compensation group is: union pressures the measurability of sales results the high level of the sales job in the organization If you want to reward goals NOT included in the compensation plan, which program should you use? Management by Objectives pay for performance straight commission A combination sales plan where the salesperson takes a set amount each pay day is called a: bonus O draw per diem O sales quota