Which of the Following Is Typically a Characteristic of a Defined

question 51

Multiple Choice

Which of the following is typically a characteristic of a defined contribution plan?

• A)Employer promises a retirement benefit
• B)No employee contributions
• C)No federal guarantee of benefits
• D)Retirement benefit computed based on an age,wage,and years of service formula
• E)Account balance not transferable to an IRA

---

Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate indirect costs to products or services, based on a selected activity base such as machine-hours or labor-hours.

Direct Labor-Hours

The overall hours spent by staff directly participating in creating goods.

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, rent, depreciation, and salaries of indirect labor, which are not directly traceable to specific products.

Predetermined Overhead Rate

An estimated charge used to allocate manufacturing overhead costs to individual products or job orders based on a predetermined activity base.