A Flexible Spending Account Allows an Employee to Set Up

question 50

True/False

A flexible spending account allows an employee to set up a pre-tax account into which a part of their pay is deposited with their employer to be used to pay for child care and medical expenses.

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Definitions:

Product Development

The creation of new products or improvements to existing products to meet customer needs or market opportunities.

Activity Rate

The predetermined overhead rate used in activity-based costing to allocate overhead costs to cost objects based on their usage of activities.

Engineering Change

A modification to a product’s design, production process, or materials, usually made to improve functionality or to reduce costs.

Allocation Base

A criterion or standard used to distribute overhead costs among various cost objects.