The De Minimis Fringe Benefit

question 46

Multiple Choice

The de minimis fringe benefit:

• A)Exclusion applies only to property received by the employee.
• B)Can be provided on a discriminatory basis.
• C)Exclusion is limited to $250 per year.
• D)Exclusion applies to employee discounts.
• E)None of these.

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Definitions:

Absorption Costing

A calculation technique in which the cost of a product is determined by including all costs associated with manufacturing, including direct materials, direct labor, as well as variable and fixed overhead costs.

Cost-plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of producing a product to determine its selling price.

Return on Investment

A measure of performance that evaluates the efficiency or profitability of an investment relative to its cost.

Selling Price

The amount of money a buyer pays to purchase a product or service.