Which of the Following Statements Regarding Fringe Benefits Is False

question 111

Multiple Choice

Which of the following statements regarding fringe benefits is false?

• A)The general rule is that an employee fringe benefit is taxable unless the benefit is specifically excluded from the employee's gross income.
• B)Employers are not allowed to deduct the cost of nontaxable employee fringe benefits.
• C)Nontaxable fringe benefits must be provided to employees on a nondiscriminatory basis.
• D)None of the above is false.

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Definitions:

Allocating Costs

The process of assigning indirect expenses to different departments, products, or projects based on relevant criteria.

Measure Of Activity

A parameter or unit used to quantify the level of operational or production activity within a specific period.

Product Margin

Product Margin is the difference between the selling price of a product and the costs associated with its production and sale, showcasing the profitability of specific products.

Activity Cost Pools

Groups of costs associated with particular activities, used in activity-based costing to allocate costs more precisely.