Which of the Following Is a Potential Consequence of Incorrect

question 72

Multiple Choice

Which of the following is a potential consequence of incorrect calculation of employee time for payroll purposes? (Select all that apply.)

• A) Federal penalties for not remitting all taxes due
• B) Erosion of available cash because of overpayments to employees
• C) Increased stakeholder approval due to employee overpayments
• D) An increase in legal proceedings initiated by employees

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Definitions:

Factory Overhead Costs

Indirect costs incurred during the manufacturing process, not including the costs of direct labor and materials.

Predetermined Overhead Allocation Rate

A rate used to apply manufacturing overhead to products or job orders, calculated based on estimated overhead costs and activity levels before production begins.

Process Costing

An accounting methodology used in manufacturing where costs are assigned to batches or work units, typically used for homogenous products.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs.