Which of the Following Terms Is Defined as Monetary Compensation

question 56

Multiple Choice

Which of the following terms is defined as monetary compensation provided for each unit of sales and expressed as a percentage of sales?

• A)Fringe benefits
• B)Commission
• C)Appraisal
• D)Increment

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Definitions:

Conversion Costs

The combined cost of direct labor and manufacturing overheads incurred to convert raw materials into finished goods.

Direct Materials

Raw materials that are directly involved in the manufacturing of a product and can be directly associated with the product.

Process Cost Summary

A document that aggregates and summarizes the total costs associated with a specific stage of production in process costing.

Materials Costs

The expenses associated with the raw materials used in the manufacturing of products or goods.