Sales commissions are classified as

a. overhead costs
b. period costs.
c. product costs.
d. indirect labor.

Answer: b. period costs.

Business

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All of the following are important underwriting principles EXCEPT:

(a) selection of risks that can be written at standard rates (b) selection according to the company's underwriting standards (c) proper balance within each rate classification (d) equity among policyowners

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The potentially most useful approach to defining sales aptitude and evaluating a person's potential is to:

A. Gain all the demographic information possible about the job candidate B. Establish the person's aptitude and if and where any training is needed for a general sales position C. Match the salesperson in terms of demographics, personality and attitude with the customers he or she will be calling on D. First determine the kinds of tasks involved in a specific sales job E. Rely on managerial opinion and experience in the selection process

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