Match the Terms with the Definitions

question 62

Multiple Choice

Match the terms with the definitions.
-The employee does not handle the paycheck; payment is made by the employer directly to the employee's bank.

• A)direct deposit
• B)electronic system
• C)employee
• D)employee earnings record
• E)Fair Labor Standards Act (FLSA)
• F)FICA taxes
• G)gross pay
• H)independent contractor
• I)manual system
• J)net pay
• K)payroll processing center
• L)payroll register
• M)salary
• N)wage-bracket method
• O)wages
• P)withhol ding allowance

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Definitions:

Differential Cost

Differential cost, or incremental cost, is the difference in total cost that will result from selecting one option over another in decision-making.

Relevant Costs

Relevant costs are those costs that should be considered when making decisions. They are directly affected by the decision in question and can include future costs that will differ among alternatives.

Fixed Manufacturing Expenses

Costs that do not vary with the volume of production, such as rent, depreciation of manufacturing equipment, and salaries of permanent factory staff.

Selling and Administrative Expenses

Expenses incurred from selling products or services and managing the business, excluding production costs.