In a Manufacturing Company the Cost of Factory Labor Consists

question 193

Multiple Choice

In a manufacturing company the cost of factory labor consists of all of the following except

• A) employer payroll taxes.
• B) fringe benefits incurred by the employer.
• C) net earnings of factory workers.
• D) gross earnings of factory workers.

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Definitions:

Current Liabilities

Financial obligations a company is required to pay within one year, such as accounts payable and short-term loans.

Accounts Payable

Liabilities owed by a business to its suppliers or vendors for goods and services purchased on credit.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, representing ownership interest held by shareholders.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.