Operating Expenses Are Known as Overhead Expenses

question 101

True/False

Operating expenses are known as overhead expenses.

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Definitions:

Net Earnings

The amount of profit that remains after all operating expenses, taxes, interest, and preferred stock dividends have been deducted from total revenue.

Hourly Rate

A rate of pay based on one hour of work, often used to compensate temporary, part-time, or freelance employees.

FICA Tax Rates

The percentages of social security and Medicare taxes that both employers and employees must pay, according to the Federal Insurance Contributions Act.

Net Pay

The amount of an employee's earnings remaining after all deductions, such as taxes and retirement contributions, have been taken out.