Sales commission is an example of which kind of pay?

Comprehensive and Detailed in Depth Explanation:

Sales commission is a form of compensation that varies based on an employee’s performance, specifically their sales results. This type of pay is classified as variable pay because it is not fixed and fluctuates depending on outcomes, unlike base pay, which is a guaranteed salary.

Option A (Base): Base pay is a fixed salary or hourly wage, not tied to performance, so this is incorrect.

Option B (Variable): Correct, as sales commission is a type of variable pay, directly tied to sales performance.

Option C (Discretionary bonus): A discretionary bonus is a one-time payment decided by the employer, not tied to a specific metric like sales.