If You Are Contributing to a 401(k) Plan at Work

question 71

Multiple Choice

If you are contributing to a 401(k) plan at work, you can still contribute to

• A) a traditional IRA.
• B) a Roth IRA.
• C) a SEP.
• D) a Keogh plan.

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Definitions:

Period Cost

Costs that are expensed in the accounting period in which they are incurred, not directly tied to the production process.

Product Costs

All costs involved in acquiring or manufacturing a product, including raw materials, labor, and overhead, up to the point of sale.

Period Costs

Expenses that are not directly tied to production, such as administrative and selling expenses, which are expensed in the period they are incurred.

Variable Costs

Expenses that change directly in proportion to changes in business activity levels or volumes.