Which of the Following Is Not Included in Employee Compensation

question 18

Multiple Choice

Which of the following is not included in employee compensation?

• A)Salaries
• B)Fringe benefits
• C)Interest payments from businesses to households
• D)Social security taxes paid to the government by employers

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Definitions:

Fixed Component

The portion of a cost or expense that remains constant regardless of changes in the level of activity or production.

Least-squares Regression

A statistical method used to determine the best-fit line that minimizes the sum of the squared differences between observed values and the values predicted by the line.

Cost Formula

An equation used to determine the total cost of production, which includes fixed and variable costs.

Activity Data

Information related to the actions or operations of a business, which may include sales, production, or other operational metrics.