Why Does Company Profitability Decrease in Direct Proportion to the Payroll

question 45

Multiple Choice

Why does company profitability decrease in direct proportion to the payroll expenses?

• A)Because payroll represents an asset and an income of the business. The higher payroll incomes are, the higher the profitability will be.
• B)Because payroll represents an asset and an income of the business. The lower the payroll expenses are, the higher the profitability will be.
• C)Because payroll represents a liability and an expense of the business. The higher payroll expenses are, the lower the profitability will be.
• D)Because payroll represents a liability and an expense of the business. The lower payroll expenses are, the lower the profitability will be.

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Definitions:

Procedure Description

A detailed account of the steps, actions, or operations involved in the performance of a specific process or procedure.

Multiple Procedure Code

Codes used in medical billing to indicate that multiple procedures were performed during the same session, affecting the billing process.

HCPCS Level II

A standardized coding system used in the United States for billing and coding products, supplies, and services not included in the CPT coding system.

DME

Durable Medical Equipment; devices or aids prescribed for patient use to aid in a better quality of living.