Question

Overriding commission is an additional commission payable to consignee by consignor as per agreement __________________.

• A. For protecting from loss of bad debt
• B. For making it as above specific price or at above invoice price
• C. As good friend
• D. As loyalty payment

Answer 1

The correct option is B For making it as above specific price or at above invoice price

Commission given to the consignee in addition to the normal commission. Purpose of such incentive is to motivate the consignee to create market for new products. Sometimes, this additional commission is allowed to consignee where certain sales limits have been exceeded.