An employee who earns a percentage of a sale is paid by what method?

Prepare for the Certiport Business Exam with interactive quizzes and detailed explanations. Build your business acumen and strategy skills efficiently with comprehensive question sets and insights. Get set for success!

The correct method of payment for an employee who earns a percentage of a sale is commission. This compensation structure is commonly used in sales roles, where employees are incentivized to sell products or services. By earning a percentage of each sale, the employees are motivated to increase their sales volume, directly aligning their earnings with the performance of their sales efforts.

In contrast, other methods of payment such as salary provide a fixed remuneration regardless of sales performance, piece work pay is based on the number of units produced or completed, and bonuses typically involve one-time payouts based on performance metrics rather than direct sales percentages. Commission stands out specifically for its performance-based nature tied to individual sales transactions.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy