In Deciding Whether a Worker Is an Employee or an Independent

question 51

Multiple Choice

In deciding whether a worker is an employee or an independent contractor, a judge will

• A) be substantially influenced by the fact that independent contractors almost always earn more than employees for doing the same work.
• B) be most influenced by the fairness of imposing vicarious liability as a result of the worker's tortious conduct.
• C) usually resolve the issue on the basis of presumptions.
• D) always give effect to the literal terms of the parties' contract.
• E) none of the above.

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Definitions:

Directly Traced

Refers to costs or expenses that can be directly linked to a specific product, service, or department.

Product Costs

Expenses directly incurred from the manufacturing of products, including direct materials, direct labor, and manufacturing overhead.

Manufacturing Margin

The difference between the sales revenue of manufactured goods and the cost of their direct materials and direct labor.

Variable Selling

Costs associated with selling a product that vary with the level of sales activity, such as commissions or shipping fees.