Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Net Sales

Financial Accounting

4. Merchandising Operations

Net Sales

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Multiple Choice

A(n) ________ is the variable amount in a salesperson's compensation.

salary

allowance

commission

bonus

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Verified step by step guidance

Understand the concept of commission: Commission is a variable amount in a salesperson's compensation that is typically based on the sales they generate. It serves as an incentive for performance.

Differentiate between fixed and variable compensation: Fixed compensation includes salary and allowances, which do not change based on performance. Variable compensation, such as commission and bonuses, depends on specific criteria like sales or achievements.

Analyze the options provided: Salary and allowance are fixed amounts, while commission and bonus are variable amounts. Commission is directly tied to sales performance, making it the correct answer in this context.

Relate commission to sales performance: A commission motivates salespeople to increase their sales, as their earnings grow with higher sales figures.

Conclude the reasoning: Based on the definition and characteristics of commission, it is the correct answer for the variable amount in a salesperson's compensation.