ACCA Applied Knowledge · Business and Technology · The relationship between accounting and other business functions
Which of the following is the main reason why the accounting function relies on the HR function for information about employee absence and overtime?
Accounting needs absence and overtime information from HR so that payroll pays employees correctly and labour costs are recorded accurately. These records directly affect gross pay, deductions and cost reporting. They have no bearing on share capital, the tax rate or responsibility for preparing financial statements.
- APayroll must pay employees correctly and the cost of labour must be recorded accuratelyCorrect
- BAbsence data is needed to determine the company's share capital
- COvertime records are used to calculate the company's tax rate
- DHR is legally responsible for preparing the financial statements
Explanation
Attendance, absence and overtime affect gross pay and labour cost, so accounting needs reliable HR data to pay staff correctly and record costs. The other options have no connection to HR information.
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