An Example of a Voluntary Deduction from an Employee's Paycheck

question 28

Multiple Choice

An example of a voluntary deduction from an employee's paycheck is ____.

• A) federal income tax
• B) FICA tax
• C) worker's compensation
• D) health insurance premium payments
• E) unemployment tax

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Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life.

Incremental Cost Approach

The incremental cost approach involves evaluating the additional costs and benefits associated with making one decision over another, used to make economically sound choices.

Payback Period

The length of time required for an investment to recover its initial cost out of the cash receipts that it generates.

Required Rate of Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular security or project.