Which of the following is not true about payroll fringe costs?
A)Managers do not need to classify payroll fringe costs.
B)Contracts and laws should be as specific as possible regarding definitions and measurements.
C)Disputes arise about whether they should be included as part of direct labor costs when calculating percentage of direct labor.
D)Managers classify them as part of direct labor costs to make direct labor costs a higher percentage of total costs.
E)Tax authorities argue that the costs are part of overhead.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is not true about payroll fringe costs?
A)Managers do not need to classify payroll fringe costs.
B)Contracts and laws should be as specific as possible regarding definitions and measurements.
C)Disputes arise about whether they should be included as part of direct labor costs when calculating percentage of direct labor.
D)Managers classify them as part of direct labor costs to make direct labor costs a higher percentage of total costs.
E)Tax authorities argue that the costs are part of overhead.

Which of the Following Is Not True About Payroll Fringe