Patrick and Allison Work at a Local Car Dealership as Sales

question 35

Multiple Choice

Patrick and Allison work at a local car dealership as sales persons and are paid on both salary and commission. What type of pay related motivation is being used?

• A) variable-pay program
• B) internal equity
• C) external equity
• D) skill-based plan
• E) flexible benefits

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Definitions:

Perpetual Inventory

An inventory system that updates the quantity and value of inventory after each transaction or event.

Interim Financial Statements

Financial reports covering a period of less than one year, often used to provide a more immediate view of a company's financial health.

Cost Flow Assumption

Refers to the method used by companies to value and manage inventory; common examples include FIFO (First In, First Out), LIFO (Last In, First Out), and average cost.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.