Question

George, a managerial accountant in a jute manufacturing company, is asked to calculate the total amount of money the company spends on the wages of its workers and on the payments it makes to its suppliers for raw materials. By finding out the company's total actual expenses, the management can come to a decision on whether or not the company can increase its workers' wages by at least ten percent. In this scenario, George is asked to calculate the company's _____.

Answer 1

The correct answer is: out-of-pocket costs.

Step-by-step explanation:

Out-of-pocket costs are intrinsic expenses companies take as part of their operations that could be reimbursed, usually by their employees. They may include car rentals, parking or raises in wages. Out-of-pocket costs can also refer to payments made by insureds for different reasons that later will be claimed for a refund to the insurance companies if eligible.