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Straight Commission Plan
Salesperson compensation method in which only a percentage of the sales volume, but no fixed salary, is paid. The amount received by a salesperson is a function of his or her performance (and not of actual time worked) reflected in sales volume. This method is used where the objective is to (1) generate maximum short-term sales revenue at the lowest overhead cost, or (2) to employ independent sales-representatives instead of permanent sales staff. See also straight salary plan. (from: http://www.businessdictionary.com/definition/straight-commission-plan.html)
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If you earn a straight commission of 20 percent and you have sales of 2700 one day what is your gross pay?
2700 X .20 = 540 gross
What is is the difference between Commission Payable and Commission Receivable?
Commission Payable is Commission that you pay, Commission Receivable is Commission someone is paying you.
Is Commission a revenue or an expense?
if Commission is received then it is revenue but if commission is paid then it is expense, if commission is receivable then it is asset while if it is payable then it is liability.
What is accrued commission?
Accrued commission is commission that builds up over time. Commission is what you earn, usually a percentage, from a sale of something.
What is the journal entry for advanced commission?
If Advance Commission paid: [Debit] Prepaid Commission xxxx [Credit] Cash/Bank xxxx If advance commission received: [Debit] Cash/Bank xxxx [Credit]Unearned Commission xxxx
Types of commission in the business?
Types of Commissions:1. Base plus commissions- It involves receiving a pre-determined base salary plus some type of commission on the sales you actually make.2. Draw against commission- type of compensation plan is totally commission based.3. Residual commissions- Earning residual commissions is a salesperson's dream, because as long as their accounts are generating revenue for the employer, the salesperson continues to receive a commission.4. Salary plus bonus- this is the method of compensation you agree upon, you'll receive a pre-determined salary each pay period that is not impacted by your performance.5. Salary plus commission- This is the same as a "base plus commission" compensation structure.6. Straight commission- type of compensation can be a bit risky, since you only get paid based on how much you sell.7. Straight salary - you'll earn a straight salary that is in no way impacted positively or negatively by your sales performance.8. Variable commission- This type of commission structure is similar to a straight commission, however, the commission rate you're paid goes up or down based on pre-determined circumstances.
What is straight salary?
Salary Plan a salesforce compensation method in which salespeople are paid a straight salary; a salary plan approach provides security and stability but may not provide the incentive associated with commission payments.
Do police officers make commission?
No. Police officers are paid an hourly wage or flat salary. They do NOT get a "commission" on fines that are levied on persons they arrest or cite.
If you earn a straight commission of 20 percent and you have sales of 2700 one day what is your gross pay?
2700 X .20 = 540 gross
What are the disadvantages of commission jobs?
The disadvantage of a straight commission position is really whether there is potential in the position. Many companies are ready to hire anyone for free but you need to know your skills, need for income, and the ability to wait it out till you catch that "big fish" (which is a high paying commission on a new account). I have been on straight commission for years and the income is up and down. Most people like a steady income, but if your bills are low and the position has good potential then it might be right for you. One other very important thing to remember. If you accept a straight commission position and you have independent contractor status you will have limited rights in collecting commissions owed if you have a falling out between you and your boss. This has happened to me. In the State of Texas, if you are straight commission but an employee then you can request that the State steps in to help mediate your contract so you will have someone to help you collect any commissions owed. Either one, an independent contractor or employee both need a contract in place spelling out your payment arrangements and needs to have language that addresses the possibility of future changes that could impact your leads, clients, etc.
What is the base salary of a knights of Columbus insurance rep?
There is no base salary , you work on straight commission. You can take a draw for your first year but you have to pay it back.
How do car salesmen get paid commission?
There are many different pay "schemes" for automotive salespeople. Some are salaried (very few and usually only the TOP sellers), some are on salary PLUS commission - others are on STRAIGHT commission (i.e. - no sales=no pay). "Commission" salespeople usually get a percentage of the sales price of the vehicle - often they can gain a percentage commission if they place a loan with a certain lender - they can gain commission by selling an extended service warranty - they can gain commission by selling additional features and options. Dealerships (new and used) are either independent or part of national, regional,. or local chains. All have varying pay plans.
What is is the difference between Commission Payable and Commission Receivable?
Commission Payable is Commission that you pay, Commission Receivable is Commission someone is paying you.
What are the 3 constitutional commission?
civil service commission, commission on election, commission on audit
Do Verizon employees make straight commission?
Employees for corporate Verizon Wireless stores are typically payed on commission. Indirect Verizon stores (Authorized Retailers, Premium Retailers, National Retailers, etc.) are independently owned stores, and pay depends on the company. Most typically, though, employees of indirect Verizon stores are also payed on some type of a commission structure.
What is the typical compensation for a tattoo artist?
They are paid via straight commission on completed work. There are days where you sit there all day and make zero. There are days you do well. Just depends.
What are the three constitutional commission in the Philippine constitution?
The Commission on Audit, the Civil Service Commission, and the Commission on Elections.
