Which of the Following Is False Regarding the Payroll Process

question 116

Multiple Choice

Which of the following is false regarding the payroll process?

• A) it supports the repetitive work routines of the payroll department
• B) because payroll is a key competency, it typically does not make sense to outsource this process
• C) it maintains data for payroll taxes and fringe benefits
• D) moving from bi-weekly to monthly payroll can reduce costs by 30 to 50 percent

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Definitions:

Cash Flows

The overall volume of capital moving into and exiting a corporation, notably impacting its cash flow.

Interest Rates

The cost of borrowing money, usually expressed as a percentage of the amount borrowed, paid over a specific period.

Future Dollars

Money that is adjusted for anticipated inflation or deflation, representing its expected future value rather than its current value.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance premiums.