A Participant, Who Is Age 38, in a Cash or Deferred

question 190

Multiple Choice

A participant, who is age 38, in a cash or deferred arrangement plan [§ 401(k) ] may contribute up to what amount in 2014?

• A) $12,000.
• B) $16,500.
• C) $17,000.
• D) $17,500.
• E) None of the above.

Analyze total asset turnover and its impact on company performance.

Calculate and interpret price-earnings ratios.

Understand the calculation and significance of return on equity (ROE).

Examine return on total assets (ROTA) and its implications for financial performance.

---

Definitions:

Total Cost Method

A cost-plus method of price setting in which all the costs of manufacturing the product plus the selling and administrative expenses are included in the cost amount to which the markup is added.

Manufacturing Cost

The total expense incurred in the process of producing a product, including direct labor, direct materials, and overhead costs.

Desired Profit

The target profit a company or individual aims to achieve in a specific period.

Net Loss

The amount by which expenses exceed revenues.