Which of the Following Is a Nominal Variable

question 35

Multiple Choice

Which of the following is a nominal variable?

• A)education
• B)employment status
• C)age
• D)occupational prestige
• E)not enough information to know

Understand the Federal Insurance Contributions Act and its implications for payroll.

Recognize the funding purposes of FICA taxes.

Determine overtime earnings according to relevant laws.

Understand the implications of federal and state income tax withholdings on net pay.

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Definitions:

Margin of Safety

The difference between actual or expected sales and the break-even point, reflecting the cushion against a loss.

Break Even

Break even refers to the point at which total costs and total revenue are equal, resulting in no net loss or gain and the initial investment is recovered.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance, remaining constant regardless of business activity levels.

Contribution Margin Ratio

A financial metric that shows the percentage of revenue that exceeds variable costs, indicating how much revenue contributes to fixed costs and profits.