Privatization of Social Security Involves

question 57

Multiple Choice

Privatization of Social Security involves

• A)tax reductions.
• B)benefit reductions.
• C)increasing the retirement age.
• D)investing portions of the trust fund in corporate securities.

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Definitions:

Absorption Costing

An accounting method that includes all direct and indirect manufacturing costs in the cost of a product.

Variable Costing

A costing method that includes only variable production costs in the cost of goods sold and uses fixed manufacturing overhead as a period cost.

Absorption Costing

A financial calculation approach that encompasses both direct and indirect expenses related to producing a product.

Variable Costing

An accounting method that only includes variable production costs (costs that change with the level of output) in the cost of goods sold and treats fixed costs as period costs.