Which One of the Costs Below Is Not Considered Part

question 148

Multiple Choice

Which one of the costs below is not considered part of direct labour costs?

• A)Employer payroll taxes on factory workers
• B)Gross earnings of the general manager of the plant
• C)Gross earnings of factory workers
• D)Fringe benefits

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Definitions:

Outstanding Shares

The total number of shares of stock that are owned by stockholders on any particular date.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership interest.

Treasury Stock

Shares that were originally issued and fully paid for but have since been bought back by the issuing company, reducing the amount of outstanding stock.

Purchases

The acquisition of goods or services in exchange for monetary payment in the course of business operations.