John Carpenter Works as a Manager of a Retail Store

question 122

Multiple Choice

John Carpenter works as a manager of a retail store.His employer has been setting money aside for him each month in the amount of 7 percent of his monthly earnings.What type of retirement plan does John have?

• A)money-purchase pension plan
• B)stock bonus plan
• C)profit-sharing plan
• D)403(b)plan
• E)defined benefit plan

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Definitions:

Variable Factory Overhead

Costs in the production process that vary with the level of production output, such as utilities and materials.

Controllable Variance

The difference between actual and budgeted costs that management can influence through its actions.

Controllable Variance

A measure in accounting that represents the difference between actual costs and the budgeted amounts that management could control or influence.

Indirect Factory Wages

Wages paid to employees who are not directly involved in production but whose services are necessary for the manufacturing process.