The Three Main Tests Courts Use to Classify Employees and Independent

question 12

Multiple Choice

The three main tests courts use to classify employees and independent contractors are:

• A) the common-law agency test, the Darden test, and the master-servant rule.
• B) the Master-servant rule, the common-law agency test, and the GAP analysis.
• C) the common-law agency test, the Internal Revenue Service (IRS) 20-factor analysis, and the economic realities test.
• D) the Internal Revenue Service (IRS) 20-factor analysis, Myers-Briggs test, and earned value analysis.

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Definitions:

Target Costing

A pricing method in which the selling price of a product is determined first, and then the target cost is calculated by subtracting the desired profit margin from the selling price.

Selling Price

The fee customers pay to acquire a product or service.

Special Order

A customer request for goods or services that are not part of a company's standard offerings, often requiring unique production or procurement efforts.

Variable Selling

denotes the costs that vary directly with the level of sales, such as commissions or shipping charges.