A Stated Percentage of Revenue Paid an Employee Who Transacts

question 2

Multiple Choice

A stated percentage of revenue paid an employee who transacts a piece of business or performs a service is called:

• A) a piece rate.
• B) a commission.
• C) a regular hourly rate.
• D) a remunerative salary.
• E) none of the above.

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Definitions:

Accounting Records

Documents and ledgers that record financial transactions and the financial position of an entity, serving as the basis for financial reporting and analysis.

Service Department Charge Rate

A rate used to allocate service department costs to the products or services produced, often based on the time or resources each product uses.

Personnel Department

A division of a company responsible for managing human resources and employee relations.

Investment Turnover

An indicator of how effectively a corporation utilizes its assets to produce sales or income.