Business Math Reviewer
Finals
Commission
- fee paid to person who makes a sale
- usually a percent of the selling price.
- the percent is called the
Commission Rate.
Formula for Commission
Commission Rate x Total Amount Sale of
the Month
Formula for the Gross Pay for the Month
Commission + Basic Salary
3 Different Types of Commission
1. Straight Commission
- a type of commission where
a person is paid a
percentage of his/her sales
only.
2. Salary Plus Commission
- a type of commission where
a person gets paid a salary
and a percentage of his/her
sales.
3. Graduated Commission
- a type of commission that the
company gives to their sales
agent not in once but in
gradual.
- The commission will increase
if the sale of an agent also
increases.
- This will encourage the agent
to sell more so that they can
earn a big commission.
Commission on Installment Basis
- If the sales are on installment basis,
they are giving commissions based
on the payment made by the buyers.
Installment means that the buyers
didn’t pay all at once.
Down Payment
- a type of payment made in cash
during the onset of the purchase of
an expensive good or service.
- The payment represents a
percentage of the full purchase
price.
Book Balance or Gross Balance
- the term used by banks to describe
the amount of money available
before any adjustment is made for
deposits in transit, checks that have
not been cleared, and reserve
requirements and interest received
from “float funds”.
Current Increased Balance
- the term used by banks to describe
the amount of money available
before any adjustment is made for
deposits in transit, checks that have
not been cleared, and reserve
requirements and interest received
from “float funds”.
Salary
- compensation is usually quoted
annually or monthly for an
employee.
Wage
- compensation quoted in an hourly or
daily rate for an employee.
Income
- money that an individual receives in
exchange for providing a
good/service or investing capital.
Benefit
- employee compensation given by an
employer on top of the basic
salary/wage.
Business Math Reviewer
Finals
-
may come in the form of cash or in
kind.
Cash Benefits
- 13th month pay, bonuses, rice
subsidy, transportation allowance
Non-cash benefits
- SSS/GSIS, Pag-ibig, Philhealth
Gross earning
- the amount earned by any person
before subtracting the taxes,
benefits, loans, and other possible
deductions.
Net earning
- the amount earned by any person
from the gross earnings less the
total deductions.
Deduction
- the amount held by any authority as
a form of payment for some
necessary dues like taxes, loans,
etc.
Formula
E=D+N
N=E-D
D=E-N
Where E is the Total Earnings, D as
Deductions, and N as Net Earnings.
Overtime Pay
- the additional compensation given to
the employee who rendered an
overtime work.
(formulas can be found in the test
paper)
Presentation of Data
- refers to the organization of data into
tables, graphs or charts, so that
logical and statistical conclusions
can be derived from the collected
measurements.
Data may be presented in three methods
o Textual Presentation
- the data gathered are presented in
paragraph forms.
- data are written and read and it is a
combination of texts and figures.
o Tabular
- methods of presenting data using
the statistical table.
- A systematic organization of data in
columns and rows.
o Graphical
- Presentation using graphs such as:
- Bar Graph
- Pie or Circle Graph
- Line Graph
- Pictograph
Measures of Central Tendency
- A single number that can represent
the entire number or set of values.
- A single figure which is the
representative or summary of the
characteristics of a given set of data.
Most commonly used measures of
central tendency
Mean
- defined as the sum of all items or
terms divided by the total number of
items or terms.
Median
- the middlemost number/term that
divides an arranged (either
Business Math Reviewer
Finals
ascending or descending order)
distribution into two equal parts.
Mode
- the number that occurs most
frequently more than any other
number in a given set of data.
Formula in Computing the Mean
of variation determine the
discrepancy or difference between
the data.
• Range
- the difference between the highest
and the lowest entries.
• Quartiles
- points which divide the set of data
into four equal parts.
There are three quartiles: Q1 Q2 Q3
Formula in Computing the Median
Quartile 1 or Q1
- The first quartile or the lower quartile
is the value that separates the lower
25% from the higher 75% of the
scores:
Q1 = ¼ x N
Quartile 2 or Q2
- The second quartile is the median
Q2 = Median
Quartile 3 or Q3
- The third quartile or the higher
quartile is the value that separates
the lower 75% from the higher 25%
of the scores:
Q3 = ¾ x N
Interquartile Range (IQR)
- the difference between the third
quartile and the first quartile.
IQR = Q3 – Q1
Note: the quartiles are computed similar to
the median.
Measures of Variation
- a value that is used to describe the
spread of a set of data.
- If a measure of central tendency
gets the typical value, the measures
Line Graph
- a graphical presentation of data that
shows a continuous change or trend.
- It may show an ascending or
descending trend
Business Math Reviewer
Finals
-
Used to track changes over short
and long periods of time.
- Used to compare changes over the
same period of time for more than
one group.
- Used for quantitative continuous
data and is appropriate with
frequency data.
Bar Graph
- Uses bars to compare categories of
data.
- It may be drawn vertically or
horizontally.
- Best when comparing means or
percentages between distinct
categories.
- The categories are measured
independently and compared with
one another.
- May contain more than 5 categories.
- Is plotted on either the x axis or the y
axis.
- The categories may be plotted on
one axis while the other axis
contains the numerical values that
represent the data being measured.
Histogram
- A graphical presentation of a
frequency distribution.
- It is a representation of tabulated
frequencies (Y-axis) using adjacent
erected rectangles with their
corresponding class intervals (Xaxis).
- The rectangles are of equal width
since the class mark is used to
represent the class intervals.
Pie Graph
- Also called a circle graph.
- A circle with the wedges or sectors
to show how much of the whole
each part makes up.
- Each slice of the pie is written in
percentage.
- To get the measure of each sector in
the chart, we compute the following:
(Can’t see the formula, here’s an
example instead:)
Reviewer by: Dayne
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FILL IN THE BLANKS ANSWERS
(Welcomes, mwa)
PHILIPPINE HOLIDAY PAY RULES
For the employee who works during regular
(1) holidays he/she shall be paid 200% of
his/her regular pay, while work done in
excess of eight hours shall be paid (2)
260%. If the said holiday falls on the (3)
Scheduled rest day of the employee then
he/she shall be paid 200% x 130%, and (4)
260% x 130% in excess of eight hours.
On the other hand the pay rules for special
(non-working) holiday is daily rate x 130%,
and (5) 195% (bonus) in excess of its eight
hours. If the special (non-working) holiday
falls on the rest day of the employee, he/she
shall be paid (6) 150% of his/her regular
wage for the first 8 hours and 150% x 130%
in excess of the eight hours