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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