Xochitl's Employers Are Able to Pay Her Less Than Minimum

question 16

Multiple Choice

Xochitl's employers are able to pay her less than minimum wage primarily because:

• A)What she earns is still much more than she could earn in her home country
• B)Her culture discourages her from asking for more
• C)She is part of an informal economy
• D)Her salary is similar to other nannies in the neighborhood

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Definitions:

Overapplied Overhead

Occurs when the overhead allocated to products or services is more than the actual overhead costs incurred.

Profit Margin

The percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a product or service.

ABC Limitations

Challenges and constraints of Activity-Based Costing, such as its complexity and the potential for inaccurate cost allocation.

Facility Level Costs

Costs that are incurred to maintain the operation of a facility as a whole, rather than specific products or services, such as rent, utilities, and property taxes.