Which of the Following Is an Advantage of Cafeteria-Style Plans

question 87

Multiple Choice

Which of the following is an advantage of cafeteria-style plans?

• A) Employees do not have to select their individual plans.
• B) Employees can get a better understanding of the value of benefits provided.
• C) These types of plans have lower administrative costs.
• D) Since employees will select the benefits that they need the most,it reduces the overall costs.
• E) When companies provide cafeteria-style plans,they do not have to pay unemployment insurance tax.

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Definitions:

Funeral Expenses

Costs incurred for services and materials related to the burial or cremation of a deceased individual.

Journal Entry

A notation in financial records that captures the debit and credit movements across accounts resulting from business transactions.

Fair Value

An estimate of the market value of an asset or liability, based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.