Choose the Correct Statement

question 4

Multiple Choice

Choose the correct statement.

• A)The purpose of Form W-4 is to calculate the amount of Social Security taxes to withhold from an employee's wages.
• B)The employer is the one to calculate the number of withholding allowances.
• C)If no Form W-4 is completed,then the employer is required to withhold as if the employee is single with no exemptions.
• D)Employees must prove to their employer that they are entitled to the number of allowances claimed on the W-4 form.

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Definitions:

Average Revenue

The amount of income generated per unit of sale or service offered, calculated by dividing total revenue by the number of units sold.

Profit Maximizes

The process by which a firm determines the price and output level that leads to the highest profit.

Average Total Cost

The per unit cost of production, calculated by dividing total cost by the quantity of output produced.

Fixed Cost

Costs that do not change with the level of production or output, such as rent or salaries.