In a manufacturing company the cost of factory labor consists of all of the following except
A) employer payroll taxes.
B) fringe benefits incurred by the employer.
C) net earnings of factory workers.
D) gross earnings of factory workers.

Question

Quizplus · Accepted Answer

The cost of factory labor consists of the gross earnings of factory workers (wages/salaries) as well as any employer payroll taxes and fringe benefits incurred by the employer. However, the net earnings of factory workers (what they take home after taxes and deductions) do not factor into the cost of factory labor for the employer.

In a Manufacturing Company the Cost of Factory Labor Consists