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27-02-2020
Business

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Req. 23: The budgeted data for the year did not include employment benefits, such as paid time off, company-paid health insurance, or company-sponsored retirement plans. From an accounting standpoint, how should these costs be treated if they relate to selling and administrative personnel?

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Supabrain Supabrain

02-03-2020

Answer:

These costs should be reported on the income statement in the profit and loss section under selling and administrative expenses. Any liability arising from the employment benefits should be shown in the balance sheet under liabilities.

Explanation:

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