When an employee's pay is calculated as a percentage of sales, it is referred to as

A) commissions.
B) gainsharing.
C) a merit plan.
D) a variable wage plan.
E) profit sharing.

Learning Objectives

• Discern between different incentive compensation strategies like differential piece rates, standard hour plans, reward for merit, and profit-sharing.
• Examine the appropriateness of diverse incentive schemes for different job categories and roles within the organization.