Each year, Aspen and the other sales managers meet with the director of sales to reevaluate the compensation plan for sales representatives
Last year they decided that the current compensation plan was tempting the sales representatives to compete too hard with each other and cross ethical lines. To maintain some healthy competition, provide employees with direct financial security, and encourage the sales representatives to act in the company spirit, a ________ compensation plan would be most appropriate.
A) straight commission
B) commission with a guaranteed salary
C) fixed salary
D) bonus with a straight commission
E) straight salary
B
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Donna's Restaurant is a popular café that specializes in home-cooked meals, friendly service, and a menu that contains vegan and vegetarian dishes, something no other restaurant in the area does. Donna's is engaging in strategic positioning by offering the unique menu items of vegan and vegetarian dishes.
a. True b. False
When using the effective interest method the amount of interest expense each period equals the
a. current market interest rate times the carrying value of the financial instrument at the date of issuance. b. current market interest rate times the carrying value of the financial instrument at the beginning of each period. c. historical market interest rate times the carrying value of the financial instrument at the date of issuance. d. historical market interest rate times the carrying value of the financial instrument at the beginning of each period. e. fair market interest rate times the carrying value of the financial instrument at the date of issuance.