George Is Allowed to Select Fringe Benefits Equal to 10

question 13

Multiple Choice

George is allowed to select fringe benefits equal to 10 percent of his annual salary of $75,000.Which of the following would be taxable if selected?

• A)$4,000 health insurance premium
• B)$5,000 of childcare under a dependent care program
• C)$1,500 country club membership
• D)Discount on company products equal to the gross profit percentage.

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Definitions:

Raw Materials

Raw materials are the basic substances or components used in the manufacturing process to produce finished goods.

Work in Process

Inventory that represents partially finished goods, which are still undergoing manufacturing processes.

Job-Order Costing

A cost accounting system used to accumulate costs per job rather than per time period, appropriate for customized products or services.

Job-Order Costing

Job-order costing is an accounting method used to track costs and evaluate the profitability of custom jobs, focusing on specific, distinct jobs or batches.