Which of the Following Statements Is True About Retirement Plans

question 141

Multiple Choice

Which of the following statements is true about retirement plans?

• A) Only employers are able to contribute to 401(k) plans.
• B) You must pay taxes on Roth IRA contributions.
• C) All employers match some or all of an employee's contributions to a 401(k) plan.
• D) Contributions to traditional IRAs are not tax-deductible.
• E) Some nonprofit and government agencies offer 401(k) plans.

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Definitions:

Activity-Based Costing

An accounting method that assigns overhead and indirect costs to related products and services by identifying cost drivers.

Machine-Hours

Machine-Hours measure the amount of time machines are in operation during a certain period, often used for allocating machine-related expenses to products.

Activity Cost Pools

A method in cost accounting where costs are accumulated according to the activities that incur them.

Activity-Based Costing

A costing methodology that assigns costs to products and services based on the resources consumed in the production process.