The direct reimbursement plan is usually the most preferred compensation policy implemented by many sales managers for their companies (Johnston, Marshall, 2010). This method gives sales managers some control over the extent of sales expenses, and the kinds of events salespeople will be motivated to perform (Webster Jr., 1966). There is not a set monetary limit with this plan. However, the sales managers can determine how much they are willing to allow for these expenses. On the other hand, the limited reimbursement option limits the amount of expense reimbursement for salespeople. By setting limits for each expense or by giving the sale reps a predetermined sum of money to cover all expenses. If firms would like to encourage new
