An Advantage of Flexible Benefit Plans Is That If Employees

question 114

True/False

An advantage of flexible benefit plans is that if employees make poor selections and do not use their benefits, it saves the employer money.

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Definitions:

Step-down Method

A cost allocation method used in managerial accounting to allocate overhead costs from service departments to producing departments.

Labor Hours

The total number of work hours spent by employees on production or service delivery.

Space Occupied

The area taken up or used by a business, organization, or equipment within a physical location.

Step-down Method

An allocation technique used in cost accounting to distribute indirect costs to various departments or products step by step, considering interactions among the departments.