A compensation plan where the sales force is paid salary plus commission is a ________.
A) purely variable cost
B) mixed cost
C) step cost
D) fixed cost

Question

Quizplus · Accepted Answer

A compensation plan that combines a base salary with a commission payment is an example of a mixed cost. The base salary represents a fixed cost, while the commission payment represents a variable cost that is directly tied to the level of sales made by the sales force.

A Compensation Plan Where the Sales Force Is Paid Salary