The Primary Lesson to Be Learned from the Lawsuit Brought

question 25

Multiple Choice

The primary lesson to be learned from the lawsuit brought by Microsoft's temporary workers in the 1990s is that:

• A)it is safest legally to hire temp workers through  a temporary staffing agency
• B)employers must provide benefits to all of their employees
• C)companies that use temp workers will often be deemed joint employers of those workers
• D)employers cannot arbitrarily exclude some employees from benefit plans by labeling them as temporary workers

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Definitions:

Direct Labor-Hours

The total hours worked directly on the manufacturing of goods.

Direct Labor Rate

The average cost paid per hour of direct labor, typically used in calculating the direct labor costs of producing goods or services.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming to more accurately reflect the resources consumed.

Direct Labor-Hours

The total number of hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating labor costs to products.