In addition, medical devices include in vitro diagnostic products, such as general purpose lab equipment, reagents, and test kits, which may include monoclonal antibody technology. Certain electronic radiation emitting products with medical application and claims meet the definition of medical device.
Sales commission is a variable cost because the amount of the account is subject to variation. Think about it: A used car salesman is paid a commission say of $500 for every car he sells for the month of October. If he sells only 2 cars, then the sales commission is $1000, If he sells a whopping 12 cars, then the sales commission is $6000!!
Rates Based on Volume. Some salespeople may be paid a commission that is variable and based on sales volume. This means that the more you sell, the higher your commission rate for the month. Such a commission structure usually has the rate increasing by 0.5 percent for each tier of sales. Sales tiers vary greatly by industry.