Business Analysis: The Direct Reimbursement Plan

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“The direct reimbursement plan give the sales manager some control over the total magnitude of sales expenses and the kinds of activities salespeople will be motivated to do” (Johnston & Marshall, 2010, p.18). Business expense reimbursement occurs when a company reimburses an employee for an expense. The employee must have paid for or incurred an expense while performing services as an employee and there must be a business connection to the spending of funds. The employee must give an account for the expense by verifying the date, time, amount and what the business expense is for. Contrary “with limited reimbursement plans firms limit the total amount of expense reimbursement by setting limits for each expense item or by providing each

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