A Manufacturer Has 20 Sales Representatives Using Their Own Cars

Multiple Choice

A manufacturer has 20 sales representatives using their own cars to cover territories of various sizes in the eastern half of the United States.To reimburse these people for the use of their cars,the plan most equitable to both management and the sales force is a:

A) Payment of actual expenses as reported by the sales representatives.
B) Flat rate per mile.
C) Fixed allowance per month.
D) Flexible allowance such as the Runzheimer plan.
E) Graduated mileage allowance;for example,30 cents a mile for the first 12,000 miles a year and 24 cents a mile for all mileage above 12,000.