As a new manager at a department store, you are excited to learn that you may receive a bonus if everyone in your department reaches their sales goals for the quarter. A bonus is considered which type of compensation?
A) salaries and wages
B) benefit
C) commission
D) incentive

Question

Quizplus · Accepted Answer

A bonus is a form of incentive compensation, which is paid to motivate employees to achieve specific performance goals. It is designed to reward employees for their performance and to encourage them to continue working hard to achieve even better results. While salaries and wages are fixed and do not vary based on performance, incentives like bonuses are variable and depend on how well employees perform. Benefits are a different type of compensation that are often offered to employees as a way to provide additional security and financial support, such as healthcare or retirement savings plans. Commission is a form of variable compensation that is generally paid to salespeople based on the amount of sales they generate.

As a New Manager at a Department Store, You Are