When an Employee's Pay Is Calculated as a Percentage of Sales,it

question 129

Multiple Choice

When an employee's pay is calculated as a percentage of sales,it is referred to as:

• A) commission.
• B) gain sharing.
• C) merit plan.
• D) variable wage plan.
• E) profit sharing.

---

Definitions:

Cash Payback Period

The duration required for an investment to generate cash flows sufficient to recover the initial outlay, measuring the investment's liquidity or risk.

Annual Net Cash Flows

The amount of cash that a company generates or loses over a year after accounting for all cash inflows and outflows.

Cash Payback Period

The time duration required to recover the initial investment cost through the cash flows generated by the investment.

Annual Net Cash Flows

The total amount of money that flows in and out of a business in one year, after all expenses have been paid.