A sales rep is paid a commission on each product sold. The commission is:
A) part of the total fixed cost.
B) part of the total variable cost.
C) not included in figuring average cost.
D) part of the total cost, but not specifically a fixed cost or a variable cost.
E) None of the above is true.

Question

Quizplus · Accepted Answer

The commission paid on each product sold is a variable cost because it varies directly with the number of products sold.

A Sales Rep Is Paid a Commission on Each Product