What can a facility received in kind along with cash salary by employees be treated as?
Answer and explanation
Correct answer: Part of compensation of employees
A benefit received in kind is a non-cash payment provided because of an employment relationship. Examples include employer-provided housing, meals, transport or medical facilities when they have an identifiable economic value. Such benefits are part of compensation of employees because they reward labour services just as cash wages do. They are not net exports, transfer income or depreciation. In national-income accounting, their value is included where the relevant accounting rules treat them as employee compensation.
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What is the correct answer to this question?
Part of compensation of employees
Why is this the correct answer?
A benefit received in kind is a non-cash payment provided because of an employment relationship. Examples include employer-provided housing, meals, transport or medical facilities when they have an identifiable economic value. Such benefits are part of compensation of employees because they reward labour services just as cash wages do. They are not net exports, transfer income or depreciation. In national-income accounting, their value is included where the relevant accounting rules treat them as employee compensation.
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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