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Which of the Following Statements Is Correct Regarding Fringe Benefits

Question 7

Multiple Choice

Which of the following statements is correct regarding fringe benefits earned by employees whose regular wages are normally classified as direct labor?


A) Fringe benefits should also be classified as direct labor.
B) Fringe benefits should be classified as indirect labor.
C) Fringe benefits should be classified as a period cost.
D) Fringe benefits should not be classified as either a product or period cost.

Correct Answer:

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