However, these kind of remuneration costs are paid ones. Organisations are also required to cater for deferred benefits to employees. Certain statutory payments to employees are also encounted under this head, like, contribution to provident fund, medical benefits, pension fund, sickness, pension fund, bonus etc. To retain and attract talent, organisations may also give various fringe benefits to their employees. Even the latest practice that is to provide stock options to employees involves certain opportunity cost to the
Cost principle: This principle of GAAP states that all the assets of the company should be recorded at the purchase price i.e historical cost. The amount of cash or cash equivalents given to acquire the asset should be used to charge depreciation and no other amounts such as market value or replacement value of asset should be used to evaluate the worth of an asset. For example a machine was purchase for $ 20,000 and will be used for 5 years with no salvage value. Then the depreciation expense will be $4000 per year and the balance sheet will show the net book value of the asset. 3.
Preserving data is challenging for businesses, law firms, and government agencies given the tremendous volumes, sources, and types of data potentially involved. This sensitive information must also be secured quickly to prevent it from being overwritten, destroyed, or otherwise spoliated. To properly preserve data, you need the right tools and methods to ensure all potentially relevant data is captured and remains intact. Data preservation is as critical as data. Hundreds of electronic files change or are overwritten when a computer is simply turned on.
An example is health benefits. Health insurance these days are very expensive, if you have this as a benefit at work it will only cost you a small percentage. There are other examples like flexible spending accounts, 401 K, savings plans, stock options, paid vacation days, paid transportation etc. So fringe benefits can make up a difference from a lower wage, and actually put you ahead of having a higher wage and nothing