Which of the Following Is a True Statement Regarding Saving

question 48

Multiple Choice

Which of the following is a true statement regarding saving for retirement?

• A)In a given year, a taxpayer may participate in either an employer-sponsored defined benefit plan or defined contribution plan but not both.
• B)In a given year, a taxpayer who receives salary as an employee and also receives self-employment income may participate in an employer-sponsored defined contribution plan or may contribute to a self-employed retirement account but not both.
• C)In a given year, a taxpayer may contribute to an IRA (either traditional or Roth)or contribute to a self-employment retirement account but not both.
• D)None of the choices are correct.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost based on the actual level of activity output.

Variable Overhead

Costs that vary with the level of production or sales volume, such as raw materials and labor directly involved in production.

Labor Efficiency Variance

The difference between the actual hours worked to produce goods and the standard hours expected, multiplied by the standard labor rate.

Direct Labor Standards

The benchmarks set for the cost and amount of direct labor needed to produce a product or service, used for budgeting and performance evaluations.