A CVP Income Statement Classifies Total Costs by Functional Areas

question 20

True/False

A CVP income statement classifies total costs by functional areas.

---

Definitions:

FUTA

The Federal Unemployment Tax Act institutes a payroll levy on companies to support state employment organizations.

SUTA

State Unemployment Tax Act; a payroll tax that employers pay to fund their state's unemployment insurance.

FICA-OASDI

The Federal Insurance Contributions Act, also known as Old Age, Survivors, and Disability Insurance, is a payroll tax which finances Social Security and Medicare programs within the United States.

SUTA

State Unemployment Tax Act, which requires employers to contribute to the state unemployment insurance program.