When Determining If Someone Meets the Definition of an Independent

question 70

Multiple Choice

When determining if someone meets the definition of an independent contractor an organization must look at all of the following EXCEPT:

• A) office space provided.
• B) instruction received.
• C) expenses reimbursed.
• D) employee benefits provided.
• E) profit or loss incurred.

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Definitions:

Variable Costing

An approach in accounting that takes into account only the variable aspects of production costs (such as direct materials, direct labor, and variable manufacturing overhead) in the computation of product prices.

Net Operating Income

Net Operating Income is a measure of a company's profitability from its regular business operations, excluding income and expenses from interest, taxes, and other non-operational activities.

Fixed Manufacturing Overhead

Regular, constant expenses related to the production process that are not affected by the level of goods produced, such as rent and salaries of management.

Ending Inventory

The total value of all inventory that a company still has on hand at the end of a reporting period.