Which of the Following Is Not an Important Consideration from the Employer's

question 66

Multiple Choice

Which of the following is not an important consideration from the employer's perspective in sponsoring a group benefits plan?

• A)The ability to write off premiums as business expenses
• B)Providing coverage for employees who are uninsurable
• C)Encouraging loyalty and trust from employees
• D)Improving staff retention

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Definitions:

Step-Variable Cost

Costs that are fixed over a small range of activity but can change with significant changes in the volume of activity.

Sunk Cost

Expenses already incurred and which cannot be recovered, and should not be considered when making future business decisions.

Direct Manufacturing Cost

The sum of all costs directly tied to the production process, including direct labor and raw materials.

Manufacturing Overhead

Costs incurred in the production process that are not directly associated with individual units, including indirect materials, labor, and utilities, vital for operational continuity.