What does commission refer to in a sales context?

In a sales context, commission specifically refers to a fee paid to a sales agent as a reward for transacting business or performing a service on behalf of a company. This payment is typically calculated as a percentage of the sales made by the agent. The concept of commission incentivizes sales agents to increase their sales performance, as they directly benefit financially from their efforts. This system aligns the interests of the sales agent with the objectives of the business, motivating agents to work harder to close deals and generate revenue.

Other options, while relevant to sales compensation, do not accurately define commission. A base salary represents a fixed amount paid regardless of performance or sales, while a type of bonus might be tied to performance metrics but is distinct from commission in that it is often a one-time payment and not directly tied to individual sales. An expense account allows sales agents to cover business-related expenses but does not involve a direct compensation mechanism linked to sales performance. Therefore, the definition of commission in the context of sales is most accurately captured by the provided correct answer.