What Test Is Used to Determine Whether a Worker Is

question 19

Multiple Choice

What test is used to determine whether a worker is an employee or an independent contractor?

• A)The Economic Realities Test
• B)The Right to Control Test
• C)The Common Law Test
• D)Each agency or entity having an interest in the question uses a different test
• E)None of these

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Definitions:

Variable Costs

Costs that change in proportion with the level of output or activity.

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Peak-period

A time frame characterized by the highest level of activity, operation, or demand in a given process, industry, or market.

Machine-hours

The total operational time of machines within a production process, utilized for cost allocation and efficiency analysis.