When an Employee Makes Regular Contributions Equal to 7% of Their

question 17

Multiple Choice

When an employee makes regular contributions equal to 7% of their salary and their employer also contributes the equivalent of 14% of salary to a superannuation fund that is an accumulation scheme:

• A) the final payout benefit is stated when the member joins the fund.
• B) the final payout depends upon the investment performance of the fund.
• C) payment is specified under the superannuation guarantee legislation.
• D) the benefit is paid in the form of a life annuity.

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Definitions:

Selling Price

The amount of money for which a product or service is sold to a customer.

Cost

The amount of money required to purchase something or the expenditure incurred on the production of a good or service.

New Balance

The amount remaining in an account after all debits and credits have been accounted for during a specified period.

Mark-up

An increase in the original price of items meant to compensate for overhead expenditures and ensure profit.