If a Firm Uses Variable Costing,fixed Manufacturing Overhead Will Be

question 15

Multiple Choice

If a firm uses variable costing,fixed manufacturing overhead will be included

• A)only on the balance sheet.
• B)only on the income statement.
• C)on both the balance sheet and income statement.
• D)on neither the balance sheet nor income statement.

---

Definitions:

Social Security Tax

A mandatory payroll tax collected to fund the Social Security program, providing retirement, disability, and survivors' benefits.

Medicare Tax

A federal tax that funds the Medicare program, which is withheld from an employee's paycheck and also matched by the employer.

FICA Tax

A federal tax in the United States that funds Social Security and Medicare, contributed by both employees and employers.

Tax Withheld

The portion of an employee's income that an employer sends directly to the government as a payment of income taxes.