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.

---

Definitions:

Net New Borrowing

Refers to the total amount of new debt acquired by a company or government, minus any debt that has been repaid during the same period.

Tax Rate

The defined percentage of income from individuals or corporations allocated for taxes.

Net Income

The profit remaining after all expenses, taxes, and costs have been subtracted from total revenue.

Negative Net Working Capital

A financial situation where a company's current liabilities exceed its current assets, indicating potential liquidity problems.