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QuizMultiple Choice

Variable Earnings — Quiz

Question 1 • Financial Math

Which of these statements is always true?

Answer
A
Workers being paid on commission have a salary that varies based on their performance.
B
Workers being paid on commission increase the accounting costs of the employer.
C
Workers being paid on commission make less money than if they are salaried.
D
Workers being paid on commission are stressed over the amount of earnings they will have.

Explanation

Commission pay is based on a worker’s sales or other performance, so the amount earned varies with performance. The other statements are not always true: commission may not increase an employer’s accounting costs, and a commission-paid worker could earn more or less than a salaried worker. Stress also varies from person to person.

AI-written and checked against the verified answer.

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