Which of the Following Is True of an Employer-Employee Relationship

question 52

Multiple Choice

Which of the following is true of an employer-employee relationship?

• A) An employee has implied power of attorney towards the principal.
• B) An employee has authority to act on behalf of the principal.
• C) An employee can enter into contracts on behalf of the employer.
• D) An employee is hired to perform a physical task or service.

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Definitions:

Work in Process Inventory

Goods partially completed by a company but not yet ready for sale, often including raw materials, labor, and overhead costs.

Direct Materials Inventory

An account used to track the cost of raw materials not yet used in production.

Direct Labor Costs

Expenses that can be directly tied to the production of specific goods or services, such as wages of workers.

Indirect Labor

Labor costs not directly associated with the production of goods or services, but rather supporting roles like maintenance and supervision.