When an Entity Has More Than One Class of Employee

question 152

Multiple Choice

When an entity has more than one class of employee, it is important to evaluate the reasonableness of payroll based on employee class.Which of the following procedures is commonly used to test this?

• A)Calculate revenue per employee
• B)Calculate total payroll costs as a percent of revenue
• C)Comparing payroll expenses with prior year balances or budgets
• D)Calculate average payroll cost per employee classification

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Definitions:

AIDA

An acronym that stands for Attention, Interest, Desire, and Action, describing stages of consumer engagement and marketing effectiveness.

Interest

The feeling of wanting to know or learn about something or someone.

Desire

A strong feeling of wanting to have something or wishing for something to happen.

Workplace Change

Modifications or transformations within the work environment, potentially affecting processes, policies, or staff.