NCARB Practice Exam Question
If the question ask not to include the two employee's salaries in the calculation, why was it included in the problem solution? ("Excluding salaries and expenses of the two partners..)
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The partners' salaries are not included in the solution. The employee salaries are for the newly hired support staff, which equates to $4,965 per pay period. The question then provides the amount of pay periods within that first six months to help determinte the cost of labor for the staff to help determine overall profit/loss over that time period.
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