A straight commission plan based on sales volume is payment for performing a unit of work,and the plan constitutes a direct (variable)expense for management.

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A straight commission plan based on sales volume pays employees based on their sales performance and is therefore a variable expense for management, as it directly correlates with sales revenue. The higher the sales volume, the higher the commissions paid out to employees, creating a direct expense for the company.

A Straight Commission Plan Based on Sales Volume Is Payment