What Classification of Expense Is It If You Contribute to a 401K

question 17

Multiple Choice

What classification of expense is it if you contribute to a 401K or 403B account provided by your work?

• A)Home Expenses
• B)Personal Expenses
• C)Savings
• D)Discretionary Spending

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Definitions:

Required Rate Of Return

The minimum expected yield by investors for providing capital to a company, influenced by risk and market conditions.

Net Operating Income

The profit generated from a company's regular business operations, excluding revenues and expenses from non-operating activities.

Contribution Margin Ratio

The proportion of sales revenue that is not consumed by variable costs and therefore contributes to covering fixed costs.

Fixed Expenses

Costs that remain constant for a period of time regardless of production levels or business activity.