In Recent Years, Total Compensation to Workers Has Risen Faster

question 267

Multiple Choice

In recent years, total compensation to workers has risen faster than the take-home pay of average workers. This implies that

• A) something is wrong with the statistics on either compensation or take-home pay.
• B) fringe benefits have become a larger share of total worker compensation.
• C) direct payments have become a larger share of total worker compensation.
• D) workers' pay has been declining slightly in recent years.

Compute gross margin and understand its implications on business profitability.

Differentiate between the accounting treatments under periodic and perpetual inventory systems.

Distinguish between current and quick ratios in evaluating company liquidity.

Understand the impact of trade discounts, sales discounts, returns, and allowances on financial performance.