Statutory Employees

question 96

Multiple Choice

Statutory employees:

• A) Report their expenses on Schedule C.
• B) Include common law employees.
• C) Are subject to income tax withholdings.
• D) Claim their expenses as deductions from AGI.
• E) None of the above.

---

Definitions:

Average Variable Cost

The variable cost (costs that change with production volume) divided by the quantity of output produced.

Marginal Cost

The increase or decrease in the total cost incurred by producing one additional unit of a product or service.

Total Variable Costs

The sum of expenses that vary directly with the level of output production.

Average Total Cost

The per unit cost of production, calculated by dividing total cost by the total quantity of output produced.