Which of the Following Statements Is Incorrect

question 98

Multiple Choice

Which of the following statements is incorrect?

• A)Qualified pension plans may be contributory or noncontributory.
• B)An employer can require employees to make contributions as long as the plan is non-discriminatory.
• C)A profit-sharing plan does not qualify as a pension plan because the amount of profit in a year cannot be known in advance.
• D)With a defined-contribution plan,the amount of total retirement benefits is unknown.

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Definitions:

Job Cost Sheet

A document that records the costs related to a specific job or project, tracking materials, labor, and overhead.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, rent for manufacturing facilities, and salaries of supervisory staff.

Unit Costs

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Raw Materials Inventory

The stock of unprocessed materials that are used in manufacturing to produce goods, representing a current asset on the balance sheet.