Income, Compensation, and Basic Pricing Concepts

Thirty vocabulary flashcards covering key terms on income, wage computations, and basic pricing concepts.

Income

Money a person receives in exchange for providing a service or work.

Salary

A fixed regular payment, typically monthly or biweekly, often quoted on an annual basis.

Wage

Compensation paid to a worker based on the number of hours, days, or units worked.

Commission

A percentage of sales paid to an employee, common in sales jobs.

Per-piece Rate

Earnings calculated according to the number of units produced.

Regular Pay

Payment received for working standard hours, usually 8 hours per day.

Regular Hours

The standard working period (commonly 8 hours a day) before overtime applies.

Hourly Rate

The amount earned for each hour of work; basis for overtime and differentials.

Overtime Pay

Additional pay for work beyond regular hours, at least 25% above the hourly rate.

Overtime Rate

Multiplier used to compute overtime pay, typically 1.25 × the hourly rate.

Night Differential

Extra 10% added to the hourly rate for work between 10:00 PM and 6:00 AM.

Night Differential Rate

The 1.10 × hourly rate applied to qualifying night-shift hours.

Overtime + Night Differential

Pay situation when overtime hours are worked during night-differential hours.

Overtime + Night Differential Multiplier

Combined rate of 1.375 × the hourly rate for overtime work at night.

Rest Day Pay

Compensation with an extra 30% added to the hourly rate for work done on a rest day.

Rest Day Multiplier

Rate of 1.30 × the hourly rate applied to work performed on rest days.

Night Differential on Rest Day

Pay for night work that occurs on an employee’s rest day.

Night Differential on Rest Day Multiplier

Combined rate of 1.43 × the hourly rate for night work on a rest day.

Overtime + Night + Rest Day

Pay situation for overtime performed at night on a rest day.

Overtime + Night + Rest Day Multiplier

Combined rate of 1.859 × the hourly rate when all three conditions apply.

Percentage Increase

A calculation showing how much a value has risen as a percent of the original amount.

Percentage Decrease

A calculation showing how much a value has fallen as a percent of the original amount.

Markup

An increase in selling price found by adding a percentage of the original price to itself.

Discount

A reduction in selling price found by subtracting a percentage of the original price.

VAT (Value Added Tax)

An additional percentage (commonly 12%) added to the price of goods and services.

Original Price (before VAT)

The base price of a product or service prior to adding VAT.

Profit

The positive difference between the selling price and the cost price.

Loss

The negative difference that occurs when the selling price is lower than the cost price.

Cost Price

The amount paid to produce or purchase a good before it is sold.

Selling Price

The amount for which a good or service is sold to a customer.