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Accounting Best Practices, Fifth Edition by Steven M. Bragg Englewood, Colorado

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Implementation Issues for Commissions Best Practices

This section illustrates the relative degree of implementation cost and duration for commission best practices, as displayed in Exhibit 8.1. The level of implementation difficulty in this area is quite polarized because of one major issue—some of the recommended changes require the complete cooperation of the sales manager, who will probably actively resist at least a few of them. Accordingly, the duration of implementation for these best practices is rated as difficult and long, though they are actually quite simple if the agreement of the sales manager can somehow be obtained in advance.

Exhibit 8.1. Summary of Commissions Best Practices
 Best PracticeCostInstall Time
Commission Calculations
8–1Automatically calculate commissions in the computer system
8–2Calculate final commissions from actual data

8–3Construct a standard commission ...

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