3
QuizMultiple Choice

Variable Earnings

Question 3 • FL-2102373-Personal Finance and Money Management Honors

Which of the following statements is always true?

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

Explanation

Commission pay is based on a worker’s performance, such as the number or value of sales they make. Therefore, the worker’s earnings vary with performance, making B the always-true statement. Commission workers may earn more or less than salaried workers, and whether they feel stressed or increase accounting costs is not guaranteed.

AI-written and checked against the verified answer.

Previous
Next