Payment based on number of units sold?

Boost your IGCSE Business Studies score by focusing on Section 2 – People in Business. Use flashcards and multiple-choice questions with explanations to prepare for your exam!

Multiple Choice

Payment based on number of units sold?

Explanation:
Commission is a form of pay that changes with performance, usually calculated as a percentage of sales or a fixed amount for each unit sold. Because earnings rise directly with the number of units sold, this type of pay highly motivates sales staff to increase their output. Wages are typically paid for time worked (hourly or daily), salaries are fixed regardless of sales, and a bonus is an extra payment tied to targets or overall performance rather than to each unit sold. So when the pay is based on the number of units sold, commission best fits.

Commission is a form of pay that changes with performance, usually calculated as a percentage of sales or a fixed amount for each unit sold. Because earnings rise directly with the number of units sold, this type of pay highly motivates sales staff to increase their output. Wages are typically paid for time worked (hourly or daily), salaries are fixed regardless of sales, and a bonus is an extra payment tied to targets or overall performance rather than to each unit sold. So when the pay is based on the number of units sold, commission best fits.

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