What Is the 2016 Elective Deferral Limit for 401(k)and 403(b)plans

question 4

Multiple Choice

What is the 2016 elective deferral limit for 401(k) and 403(b) plans?

• A)3 percent of compensation.
• B)5 percent of compensation.
• C)$12,000.00.
• D)$18,000.00.

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Definitions:

Contribution Margin

The amount by which the sales of a product exceed its variable costs, representing the portion of sales revenue that contributes to covering fixed costs and generating profit.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) to produce one unit of a product.

Absorption Costing

An accounting method that includes all manufacturing costs (direct material, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Net Operating Income

A company's total earnings from its operations, excluding taxes and interest.