Identify the Part-Time Equivalent (FTE) Measure for a Part-Time Employee

question 11

Multiple Choice

Identify the part-time equivalent (FTE) measure for a part-time employee who works three 7.5-hour shifts per week.

• A) 0.6 FTE
• B) 0.5 FTE
• C) 0.4 FTE
• D) 0.2 FTE

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Definitions:

Salvage Value

The projected remaining worth of an asset upon reaching the end of its serviceable duration.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting its decrease in value over time.

Straight-line Depreciation

A method of allocating the cost of a tangible asset over its useful life evenly.

Total Asset Turnover

An efficiency ratio indicating how well a company's assets are used to generate revenue from sales.