All of the Following Statements Regarding FICA Taxes Are True

question 146

Multiple Choice

All of the following statements regarding FICA taxes are true except:

• A)FICA taxes are deducted from the employee.
• B)Employers must pay withheld FICA taxes to the IRS.
• C)The amount of FICA deducted from the employee is credited to a liability account.
• D)A self-employed person is exempt from FICA taxes.
• E)An employer must pay FICA taxes equal to the amount withheld from the employee.

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Definitions:

Activity Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate reflection of actual costs involved in production.

Cost Of Resources

The total expense incurred in utilizing assets, materials, or services for the purpose of producing goods or providing services.

Forklifting Costs

Forklifting costs refer to the expenses associated with operating and maintaining forklifts in a storage or manufacturing facility, including fuel, repairs, and labor.

Machine Setup Costs

Expenses incurred to prepare or adjust machinery for a specific production run or task.