Question

Over-riding commission is a commission payable to consignee by consignor ______________.

• A. For protecting himself from bad debt
• B. For making sales above specific price
• C. As good friend
• D. As loyalty payment

Answer 1

The correct option is B For making sales above specific price

Over riding commission is a commission payable to consignee by consignor for making sales above specific price. As an incentive to encourage extra efforts on the part of the consignee for newly launched products or slow moving goods in the market, the consignor may pay over riding commission to the consignee.