The Portion of a Sales Rep's Compensation That Is Based

question 93

Multiple Choice

The portion of a sales rep's compensation that is based on his or her performance is called:

• A)bonus.
• B)stipend.
• C)contribution.
• D)incentive pay.
• E)salary.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance expenses.

Cash Break-Even

A financial metric indicating the point at which a company's cash expenses equal its cash revenues, excluding non-cash expenses.

Variable Cost

A cost that varies with the level of output or production, such as raw materials and labor expenses.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, which remain constant regardless of the company's output.