Types of Commission Quiz

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the definition of Graduated Commission?

A type of commission based on commission rates for different levels of sales (correct)
An additional commission paid to a sales supervisor based on store sales
A monthly bonus in addition to a certain commission
An extra commission for exceeding sales targets

What is the definition of Override Commission?

An additional commission paid to a sales supervisor based on store sales or the sales of the representatives working under the supervisor (correct)
A monthly bonus in addition to a certain commission
An extra commission for exceeding sales targets
A type of commission based on commission rates for different levels of sales

What characterizes Commission Bonus?

An additional commission paid to a sales supervisor based on store sales or the sales of the representatives working under the supervisor
A type of commission based on commission rates for different levels of sales
An extra commission for exceeding sales targets
A monthly bonus in addition to a certain commission (correct)

What distinguishes Graduated Commission from Override Commission?

<p>Graduated Commission is based on different levels of sales, while Override Commission is an extra payment for exceeding targets (A)</p> Signup and view all the answers

How does Override Commission differ from Commission Bonus?

<p>Override Commission is paid based on store or representative sales, while Commission Bonus is a type of commission based on different levels of sales (A)</p> Signup and view all the answers

Study Notes

Types of Commissions

Commissions are fees charged for specific services or transactions provided to customers.
There are several types of commissions, including:

Straight Commission

A type of commission in which the agent or salesman's earnings are based on commission alone.
Typically, the earning rate is around 1% of the transaction value.

Salary plus Commission

A type of commission in which the agent's earnings are based on a basic or fixed salary plus a commission.
The agent receives a steady income (salary) and additional earnings based on performance (commission).

Bonus Commission

A type of commission in which the sales agent receives a monthly stipend plus a commission and/or bonus for exceeding a certain sales quota.
The bonus is tied to meeting or exceeding specific sales targets.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge of different types of commissions, which are fees charged for specific services or transactions provided to customers. This quiz covers straight commission, salary plus commission, salary plus bonus commission, graduated commission, and override commission.