Which Statement in Relation to Payroll Ancillary Costs Is Untrue

question 58

Multiple Choice

Which statement in relation to payroll ancillary costs is untrue?

• A) Payroll ancillary costs are employee benefits set down in various awards and contracts in addition to benefits relating directly to hours worked.
• B) Examples of payroll ancillary costs are annual leave, sick leave and long-service leave.
• C) Payroll ancillary costs equal gross wages less deductions.
• D) Workers compensation insurance is a payroll ancillary cost not actually paid to employees but paid on their behalf.

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Definitions:

Lower Of Cost

A principle that requires inventory to be recorded at the lower of its historical cost or the market value.

Market Method

A valuation method that prices assets or liabilities based on current market prices or values.

Original Costs

The initial monetary value paid or incurred for an asset, including purchase price and any additional charges necessary to bring it to its current location and condition.

LIFO Perpetual

LIFO Perpetual is an inventory costing method that assumes the last items produced or purchased are the first to be sold, with continuous inventory and cost of goods sold updating.