Question

Types of commission are:
(a). Straight commission.
(b). Salary plus commission.
(c). Graduated commission.
(d). All of the above.

Answer 1

Hint: A commission is a fee paid for services, usually a percentage of the total cost. There are several types of commissions. Check the options one by one if they come under any type of commission or not.

Complete step-by-step answer:
In this problem, we need to find the types of commissions from the given options, so we will check each option one by one to get the correct option. We know that a commission is paid to a salesperson for a service by the seller with respect to the main price or total cost. For example, a sales person takes 5 percent commission means the sales person takes Rs. 5 for selling a product of Rs. 100.
There are several types of commission.
In straight commission, no fixed salary is paid to an employee. Instead, the employee is paid a percentage of the total sales that person has achieved. So, straight commission is one type of commission. Here, the employee gets a minimum fixed salary even if he does not achieve a sale during the month. The commission which is paid is similar to a bonus on the base salary.
 Salary plus commission is also a type of commission where a fixed salary and a commission is paid to an employee. Therefore, this is also one kind of commission. Here, the employee gets a minimum fixed salary even if he does not achieve a sale during the month. The commission which is paid is similar to a bonus on the base salary.
A graduated commission is a system of compensation for sales people where the percentage of sales earned increases as the sales volume increases. Therefore, graduated commission is also one kind of commission. Here, the employee is paid increasingly as the amount of sales increases, so this type of commission usually pays more than a straight commission.
Hence, all the four options are correct.

Note: Here we can make mistakes while choosing the options. If the question is given as a multiple choice question then we have to select all the four options. If the quest is given as a single choice question then we have to select option (d). Also, a common mistake which can be made is that students often confuse themselves between the different types of commissions. They should remember the definition and the conditions under each type of commission thoroughly.