Commissions or bonuses that a salesperson receives from a company are categorized as the ________ of a compensation plan.

Question

Quizplus · Accepted Answer

Commissions or bonuses are a variable amount because they are typically based on the salesperson's performance and can fluctuate based on their success in meeting sales goals or targets. The base salary is a fixed amount that the salesperson receives regardless of performance, while fringe benefits and pension components are separate components of a compensation plan altogether.

Commissions or Bonuses That a Salesperson Receives from a Company