Which One of the Following Statements About Payroll Is Incorrect

question 26

Multiple Choice

Which one of the following statements about payroll is incorrect -

• A) you must record an hourly rate, salary or commission to process a paycheque
• B) the program calculates EI, CPP and Income Tax based on federal tax tables
• C) you must enter amounts for RRSP and Medical manually in the payroll journals
• D) the payroll ledgers do not have a single control account

---

Definitions:

Direct Labor-Hours

The compiled working hours of employees directly active in manufacturing tasks.

Activity-Based Costing

A method of allocating overhead and indirect costs to specific products or projects based on their consumption of resources.

Predetermined Overhead Rate

A rate calculated at the beginning of an accounting period, used to allocate overhead costs to products or job orders based on a certain activity.

Customizing Department

A specialized division within a company dedicated to tailoring products or services to individual customer specifications or preferences.