What Is One Advantage in Participating in a Registered Retirement

question 59

Multiple Choice

What is one advantage in participating in a registered retirement savings plan?

• A)you always pay taxes on these contributions during the year you contribute
• B)you are allowed to contribute 50% of your income
• C)time value of money does not apply
• D)the amount you deposit can be used as a deduction on your income tax

---

Definitions:

Equivalent Units

A concept used in cost accounting to convert partially completed goods into the equivalent of a full finished good for inventory valuation.

Direct Materials

Raw materials that can be directly traced to the production of a specific product.

Direct Labor

The wages and other costs for workers who are directly involved in the production of goods or the delivery of services.

Indirect Materials

Materials used in the production process but not directly traceable to a finished product, often considered part of manufacturing overhead.