What Is a Disadvantage to Using Paycards as a Method

question 21

Multiple Choice

What is a disadvantage to using paycards as a method of transmitting employee compensation?

• A)Convenience of retrieving pay disbursements.
• B)Potential withdrawal and point-of-sale limitations.
• C)Ease of paying traveling employees.
• D)Acceptance of paycards at many locations.

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Definitions:

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) to produce one unit of a product.

Absorption Costing

An accounting method that includes all manufacturing costs (direct material, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Net Operating Income

A company's total earnings from its operations, excluding taxes and interest.

Absorption Costing

A cost accounting procedure that comprises adding up all expenses involved in manufacturing—direct materials, direct labor, and manufacturing overhead, both fixed and variable—to the cost of the product.