A Good Way to Explore the Distinction Between Employee and Subcontractor

question 17

Multiple Choice

A good way to explore the distinction between employee and subcontractor is to:

• A) perform an Internet search for discussion boards on the topic.
• B) apply common sense.
• C) consult the CRA guide.
• D) interview other small contractors.

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Definitions:

Customizing

The process of making or modifying something according to a customer's individual requirements.

Predetermined Overhead Rate

A calculated rate used to allocate manufacturing overhead costs to products based on a specific activity basis, such as labor hours or machine hours.

Machine-Hours

A calculation of activity or production volume, taking into account the length of time machines are in use.

Direct Labor-Hours

The total hours of work contributed by employees who are directly involved in the manufacturing or production process.