All of the Following Are Properly Defined as Wages Subject

question 68

Multiple Choice

All of the following are properly defined as wages subject to the withholding of federal income taxes except :

• A) a year-end bonus.
• B) kitchen appliances given by manufacturer in lieu of cash wages.
• C) dismissal payment.
• D) vacation pay.
• E) payments made under workers' compensation law.

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Definitions:

Absorption Costing

A costing technique that incorporates the total manufacturing expenses such as direct materials, direct labor, along with both variable and fixed overheads, into the pricing of a product.

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of a product.

Unit Product Cost

The total cost associated with producing one unit of a product, including direct materials, direct labor, and allocated overhead.

Net Operating Income

A business's income after deducting operating costs, not including taxes or interest.