Question:
The Salary, Commission and Bonuses are collectively referred as
The Salary, Commission and Bonuses are collectively referred as
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Salary, commission and bonus are cash payments the salesman can spend now.
Updated On: Oct 19, 2026
- Net Profit Income
- Current Spendable Income
- Non Compensation Rewards
- Combination Rewards
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The Correct Option is B
Solution and Explanation
Step 1: Understand the concept:
A sales force is paid in many ways. Some payments come every month or every quarter and can be spent at once. Others are saved for later, like a pension.
Step 2: Name the parts of current pay:
Salary is the fixed pay given at regular intervals.
Commission is pay linked to the sales a salesman makes.
Bonus is an extra amount paid for good performance or for reaching a target.
Step 3: Add them together:
All three are received in cash during the working period. The salesman can spend them right away. Together they are called Current Spendable Income (CSI).
Step 4: Why the other options are wrong:
Net Profit Income is not a compensation term. It is a profit measure of the firm.
Non Compensation Rewards are things like recognition, praise and promotion, not cash pay.
Combination Rewards is not the standard name for this group of cash payments.
Final Answer:
Salary, commission and bonuses together form Current Spendable Income. The correct option is (B).
A sales force is paid in many ways. Some payments come every month or every quarter and can be spent at once. Others are saved for later, like a pension.
Step 2: Name the parts of current pay:
Salary is the fixed pay given at regular intervals.
Commission is pay linked to the sales a salesman makes.
Bonus is an extra amount paid for good performance or for reaching a target.
Step 3: Add them together:
All three are received in cash during the working period. The salesman can spend them right away. Together they are called Current Spendable Income (CSI).
Step 4: Why the other options are wrong:
Net Profit Income is not a compensation term. It is a profit measure of the firm.
Non Compensation Rewards are things like recognition, praise and promotion, not cash pay.
Combination Rewards is not the standard name for this group of cash payments.
Final Answer:
Salary, commission and bonuses together form Current Spendable Income. The correct option is (B).
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