Which of the Following Fringe Benefit Does Not Impose a Limit

question 1

Multiple Choice

Which of the following fringe benefit does not impose a limit on the amount eligible as a tax-free benefit?

• A)A child and dependent care program
• B)Group term life insurance premiums
• C)Education assistance plan
• D)Excess capacity services (such as unsold airplane seats)

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Definitions:

Diseconomies of Scale

This phenomenon occurs when a firm's production costs per unit increase as it produces more, due to inefficiencies that arise from scaling up operations.

Economic Profit

The economic result derived from subtracting a business's entire expenses, both explicit and implicit, from its total incoming funds.

Product Price

The amount of money required to purchase a good or service, determined by factors like production cost, market demand, and competition.

Optimal Output

The level of production at which a company can achieve the highest possible profit, balancing costs and revenues effectively.