Vidyalelo
Commerce · Q328

Accounting

Graduate and Post Graduate · Commerce · question 328

Q328

Overriding commission is generally calculated on

A.
Cash sale only
B.
Total sales exceeding invoice value/cost
Answer
C.
Credit sales
D.
None of the above

Answer: Option B

Solution

Answer: Option B
Solution:
Overriding commission is generally calculated on Total sales exceeding invoice value/cost. Overriding Commission is the extra commission allowed to the consignee in addition to the normal commission usually for making extra efforts to sell a new product in the market.