Freisleven Corporation has und

Freisleven Corporation has undertaken a cost study of itsoperations. One area of concern to the company is the total cost oflabor, particularly the cost of employee benefits. Prepare a listof the different kinds of costs that a company might incur as partof its “total package” salary cost. Support your analysis


One of the prominent costs that acompany can incur for its opertions are employee benefits. Acompany need to reward its employees with salary in return of theirservices in the course of employment. The employee benefits givento the employees vary according to companies.

The list of different kinds of coststhat a company might incur as part of its total package salarycosts are:-

1. Basic Salary

2. Dearness Allowance

3. Travelling Allowances

4. House Rent Allowances

5. Other Allowances

6. Bonus

7. Gratuity

8. Retirement benefits

9. Employee Insurance and Providentfund

10. Overtime salary/ wages.

11. Performance Incentives etc

Suppose, take the example of Mr. Aworking with JJJ LLP, Texas. He is provided with the followingemployee benefits say:-

Basic Salary – $5,000

DA – $300

Travel Allowance – $350

Bonus during Festivals – $2,000

Here, the total CTC(Cost To Company)shall be $7,650 for the employee which means that the companyincurrs this amount eyery year in respect of Mr. A.

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