Which of the Following Is True About Excluded Fringe Benefits

question 53

Multiple Choice

Which of the following is true about excluded fringe benefits? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left
With a question mark will be automatically graded as incorrect.)

• A) Excluded fringe benefits are not generally a taxable part of employee pay.
• B) Excluded fringe benefits are generally not reported on the employee's W-2.
• C) The cash value of excluded fringe benefits is always taxable.
• D) They must be part of the employer's cafeteria plan.

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Definitions:

Fixed Manufacturing Overhead

The sum of all consistent, non-variable costs associated with manufacturing, including salaries of supervisors and rent of the facility.

Job-Order Costing System

An accounting method that tracks the costs associated with producing a specific batch of products or a specific job.

Predetermined Overhead Rate

The rate used to allocate manufacturing overhead to products, calculated before the period begins based on estimated costs and activity levels.

Direct Labor-Hours

A measure used in accounting to allocate costs, referring to the total hours worked by employees directly involved in the manufacturing process.