Which of the Following Is Not a General Rule for Calculating

question 34

Multiple Choice

Which of the following is not a general rule for calculating the payroll factor?

• A) Allocates compensation for employees working in more than one state.
• B) Excludes compensation to independent contractors.
• C) Assigns the payroll of each employee to a single state.
• D) Includes salaries, commissions, and bonuses.

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Definitions:

Marginal Product

The extra production generated when one more unit of a particular input is added, with all other inputs remaining unchanged.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Extra Output

The additional production that is generated as a result of adding more of a variable input, such as labor or capital.

Diminishing Returns

A principle stating that as additional amounts of a variable input are added to a fixed input, beyond some point the marginal product of the variable input begins to decrease.