Nicholas Is the Driver for a Company Executive

question 79

Multiple Choice

Nicholas is the driver for a company executive. He is paid $13.50 per hour for his services and overtime only for hours worked in excess of 40 hours per week. His actual driving time varies, depending on the needs of the executive. Which of the following is true about Nicholas's
Compensation?

• A) Nicholas must maintain a log of miles driven to document his activities.
• B) Nicholas will receive compensation for wait time when it is for the firm's benefit.
• C) Nicholas will not receive compensation for idle times when is waits for the executive to conduct business.
• D) Nicholas will be compensated only for the hours during which he is driving.

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Definitions:

Joint Costs

Expenses that are incurred in the process of producing two or more products up to the point where the products are separately identifiable.

Budgeted Costs

Estimated expenses planning for future periods, which companies use for managing financial resources and controlling expenditures.

Responsibility Accounting

This accounting methodology focuses on collecting, summarizing, and reporting financial information related to the responsibilities of individual managers.

Performance Report

A document that compares budgeted to actual financial results to gauge the performance of a department, project, or company.