Are You a Commission & Margin Expert?

Test your knowledge of commissions and profit margins. Understand how sales, discounts, and targets affect business profits.

Question 1 of 12

Q1. Can margin be negative?

A No, always positive

B Only for big companies

C Only for taxes

D Yes, when cost exceeds revenue

Q1. How is profit margin calculated?

A Revenue × Cost

B Cost ÷ Revenue

C (Revenue – Cost) ÷ Revenue × 100

D Revenue + Cost

Q1. Can commission be based on target achievement?

A No, only sales

B Only for managers

C Only in bonuses

D Yes, many companies tie commission to targets

Q1. If selling price increases, what happens to margin?

A Margin decreases

B Margin stays same

C Margin increases

D Margin becomes negative

Q1. What is commission in sales?

A Fixed salary

B Tax on sales

C Payment based on sales performance

D Profit earned by company

Q1. How does discount affect margin?

A Increases margin

B No effect

C Only affects profit

D Reduces margin

Q1. Difference between markup and margin?

A Markup = profit ÷ revenue, Margin = profit ÷ cost

B Markup = tax on cost, Margin = tax on revenue

C Markup = added to cost, Margin = percentage of revenue that is profit

D No difference

Q1. How to calculate commission percentage?

A Commission ÷ Cost × 100

B Commission ÷ Sales × 100

C Sales ÷ Commission × 100

D Revenue ÷ Cost × 100

Q1. Is commission always fixed?

A Yes

B Only for employees

C Only for managers

D No, it can vary based on sales performance

Q1. Difference between gross and net margin?

A Gross = after tax, Net = before tax

B Gross = profit ÷ revenue, Net = profit after all expenses ÷ revenue

C Gross = total revenue, Net = total cost

D No difference

Q1. What is net profit?

A Revenue – Taxes only

B Revenue – Cost only

C Revenue – Total Expenses

D Revenue × Cost

Q1. Which is better: high margin or high volume?

A High volume always

B High margin always

C Depends on business strategy

D Neither matters

Quiz Complete

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6/8

Correct Answer

Accuracy Rate 50%

Wrong Answers 5/8

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Are You a Commission & Margin Expert?

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Quiz Complete

6/8