Manager's Commission is __________ to company.

Loss

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Profit

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Expense

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Income

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Solution

The correct option is B Expense
The manager of the business is sometimes given the commission on the net profit of the company. The percentage of the commission is applied on the profit either before charging such commission or after charging such commission. In the absence of any such information, it is assumed that commission is allowed as a percentage of the net profit before charging such commission. Manager's commission is an expense to the company.
Suppose the net profit of a business is Rs. 110 before charging commission.

If the manager is entitled to 10% of the profit before charging such commission, the commission will be calculated as:
= Rs. 110 X 10/100
= Rs. 11

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Similar questions

If the profit before manager's commission is Rs. 80,000 in the company ABC Ltd. & the manager is entitled to a commission of 5% after deducting the manager's commission, the amount of commission shall be:

Q. If the manager is entitled to a commission of

5 %

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(b) Management of the company

(d) Customers

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Q. Only an individual can be appointed a manager of a company.

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