Each of the Following Items Is Accurately Defined Under FICA

question 66

Multiple Choice

Each of the following items is accurately defined under FICA as taxable wages except :

• A) value of meals furnished employees for the employer's convenience.
• B) value of meals furnished employees for the employees' convenience.
• C) commissions.
• D) severance pay.
• E) $500 award for productivity improvement suggestion.

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Definitions:

Labor-Hour

A unit of measure representing an hour of work performed by an employee.

Fixed Overhead Volume Variance

The difference between the expected fixed overhead costs based on standard volume and the actual fixed overhead incurred.

Electrical Motor

A device that converts electrical energy into mechanical energy, widely used in various applications including appliances, industrial machinery, and vehicles.

Standard Machine-Hours

A predetermined measure of how long machines are expected to operate to complete a production task.