If a CPP Amount Is Missing in a Payroll Journal

question 27

Multiple Choice

If a CPP amount is missing in a payroll journal entry, it is most likely that -

• A) the employee has made the maximum contribution for the year
• B) the employee's province of employment does not require CPP contributions
• C) the employee makes CPP contributions outside of work
• D) all of the above are possible explanations

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Definitions:

Net

Typically refers to the amount remaining after certain deductions are made, such as net income or net profit.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Carrying Cost

The total cost associated with holding inventory, including storage, insurance, taxes, and potential obsolescence.