Refer to Fact Pattern 17-1

question 42

Multiple Choice

Refer to Fact Pattern 17-1. With respect to third parties, Nadya is Purified's

• A)employee, agent, and independent contractor.
• B)employee and agent.
• C)employee but not agent.
• D)independent contractor.

---

Definitions:

Variable Overhead Costs

Costs that fluctuate with production volume, such as utilities or raw materials.

Service Company

A business that provides non-physical goods or services to customers.

Planning Budget

A budget created for a particular level of activity, used as a tool for decision making and performance evaluation.

Employee Salaries And Wages

The compensation paid to employees for their labor, including both fixed salaries and hourly wages.