The health care premium for workers and the pension costs are included in _________?

Correct answer: A. payroll fringe costs

  • A. payroll fringe costs
  • B. health costs
  • C. premium costs
  • D. workers costs

Explanation

Payroll fringe costs are indirect employee-related costs, including health-care premiums, pension contributions, insurance, and similar benefits. They are separate from the employee's basic wages.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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