Commission to Manager on NP

August 8, 2012 Financial Accounting No comments

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Manager can get commission on net profit before charging such commission or after charging such commission. Before charging such commission way is simple because you can easily calculate commission on the net profit before deducting such commission. In after charging such commission, we have to amend our rate because given net profit will always before charging. we just calculate commission with the rate/ net profit + rate. More you can see from above video.

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