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The Store Managers at Bafrolt, an Apparel Supply Chain, Who

question 2

Multiple Choice

The store managers at Bafrolt, an apparel supply chain, who complete three years in the company, are paid a share of the company's earnings annually. Which of the following variable pay systems does this scenario best illustrate?

Definitions:

Credit Sales

Sales made by a business where the payment is deferred to a later date, allowing the buyer to take possession of goods or services immediately but pay later.

Collect

To gather or amass something, often refers to the act of receiving payments or debts.

Depreciation Expense

The allocated cost of a tangible fixed asset over its useful life, reflecting its use and wear and tear over time.

Administrative Salaries

Expenses related to the salaries of employees who perform general administrative duties not directly tied to production or sales.