With the straight-commission plan of compensating the sales force,a salesperson's earnings become a cost.
A)Marginal.
B)Taxable.
C)Variable.
D)Static.
E)Fixed.

Question

Quizplus · Accepted Answer

With the straight-commission plan, a salesperson's earnings are directly tied to their sales performance and are therefore variable. The more they sell, the more they earn. This differs from a fixed salary plan where a salesperson receives the same pay regardless of their sales performance. While earnings may be taxable as income, this is not the defining characteristic of the plan. Therefore, the best choice is C - variable.

With the Straight-Commission Plan of Compensating the Sales Force,a Salesperson's