If a production unit gave ₹50 crore as cash salary and an in-kind facility worth ₹10 crore to employees, how much will be added to compensation of employees?
Answer and explanation
Correct answer: ₹60 crore
Compensation of employees includes payment in cash as well as the value of certain goods and services supplied by the employer for employees’ benefit. Therefore, the total compensation is ₹50 crore cash salary + ₹10 crore in-kind facility = ₹60 crore. The facility is not ignored merely because no cash was paid for it. Thus, option C is correct.
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What is the correct answer to this question?
₹60 crore
Why is this the correct answer?
Compensation of employees includes payment in cash as well as the value of certain goods and services supplied by the employer for employees’ benefit. Therefore, the total compensation is ₹50 crore cash salary + ₹10 crore in-kind facility = ₹60 crore. The facility is not ignored merely because no cash was paid for it. Thus, option C is correct.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
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