Which of the following is not included in factory labor costs?
A) Gross earnings.
B) Employer payroll taxes.
C) Fringe benefits.
D) All of these are included.

Question

Quizplus · Accepted Answer

All of the options listed (gross earnings, employer payroll taxes, and fringe benefits) are components of factory labor costs. These costs are part of the total manufacturing cost, which also includes direct materials and manufacturing overhead. Gross earnings refer to the total amount earned by the workers before any deductions. Employer payroll taxes are taxes that employers are required to pay on behalf of their employees, such as social security and Medicare taxes in the United States. Fringe benefits include additional benefits provided to employees, such as health insurance, retirement benefits, and paid time off, which are also considered part of the labor costs in a manufacturing setting.

Which of the Following Is Not Included in Factory Labor