Question

Project A has a sales force on a fixed salary is an example of a:

a) Commission-based incentive
b) Fixed-cost structure
c) Performance bonus system
d) Variable compensation plan

Answer 1

A sales force on a fixed salary is an example of a fixed-cost structure.

Step-by-step explanation:

Project A having a sales force on a fixed salary is an example of a fixed-cost structure. In a fixed-cost structure, the sales force is paid a set amount regardless of their performance or the amount of sales they generate. This is different from commission-based incentives, performance bonus systems, and variable compensation plans, where the pay is based on the sales or performance of the sales force.