Which of the Following Is True of the Cost of Benefits

question 68

Multiple Choice

Which of the following is true of the cost of benefits?

• A) Data about costs help employers to select the kinds of benefits to offer.
• B) The lowest-cost items tend to offer the most room for savings.
• C) Non-negotiable benefits tend to help the employer save more.
• D) Cost control is easier when economic growth slows.
• E) Concern over costs has prompted many employers to shift from PPOs to traditional health insurance.

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Definitions:

Off-Balance-Sheet

Financial obligations or assets not recorded on a company's balance sheet, often due to being contingent or uncertain.

Disposal of a Segment

The act of selling, liquidating, or otherwise eliminating a division or segment of a business.

Income Statement

An income statement is a financial document that details a company's revenues and expenses over a specific time period, culminating in net profit or loss.

Administrative Expense

Costs related to the general operation of a business, including salaries of senior executives, costs of any administrative functions, and other non-sales or production expenses.