Standard Costs Are Generally Based On

question 8

Multiple Choice

Standard costs are generally based on:

• A) Desired production costs for the period
• B) The actual production costs for the period
• C) The sales price expected for the period
• D) The estimated average production costs for the period

---

Definitions:

Net Payroll

The total amount of wages payable to employees after deductions such as taxes and benefits.

Salaries And Wages Payable

Liabilities representing amounts owed by an employer to its employees for work performed but not yet paid.

FICA Taxes Withheld

The part of wages that are taken out for Social Security and Medicare, as required by the Federal Insurance Contributions Act.

FICA Taxes

Taxes collected from both employers and employees in the United States to fund Social Security and Medicare, consisting of both Social Security and Medicare taxes.