Asked by Elizabeth Offer on Jun 09, 2024
Verified
Insurance Plus provides their sales staff with a base salary and commissions. When the various departments' actual performance exceeds the budgeted sales figures an additional bonus is paid. This is an example of
A) facilitating communication and coordination.
B) controlling profit and operations.
C) evaluating performance and providing incentives.
D) allocating resources.
Sales Staff
Employees responsible for the sale of products or services, pivotal in achieving business revenue targets and maintaining customer relationships.
Budgeted Sales
Projected sales revenue a company plans to achieve in a certain period, often used for planning purposes.
- Understand how budgeting is used to evaluate performance and provide incentives.
Verified Answer
ES
Elyza SanchezJun 13, 2024
Final Answer :
C
Explanation :
The system of providing a base salary, commissions, and performance-based bonuses is a way of evaluating performance and providing incentives to employees to exceed their budgeted sales figures. This system motivates the employees to work harder and helps the company reach its sales goals.
Learning Objectives
- Understand how budgeting is used to evaluate performance and provide incentives.
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