Group RRSP/DPSP Combinations Are Popular in Kerrie's Company and Commonly

question 8

Multiple Choice

Group RRSP/DPSP combinations are popular in Kerrie's company and commonly popular in Canada.Kerrie has found out that they are popular because

• A)no tax is paid at all.
• B)they increase severance payments.
• C)employers' provide contribution to them.
• D)no tax is paid until money is received from the plans at the time of the employee's death.
• E)membership is automatic upon beginning employment.

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Definitions:

Significant Variances

Large or meaningful differences between planned and actual figures in budgeting or accounting, requiring investigation.

Over Budget

Over budget refers to a situation where actual spending exceeds the planned or allocated amount for a particular budget category.

Budget

An estimate of income and expenditure for a set period of time, often used as a plan for financial operations.

Activity Base

A measure used for allocating costs to cost objects, typically related to the level of activity or volume of goods produced that incurs costs.