Which Statement Is True

question 122

Multiple Choice

Which statement is true?

• A)The Social Security tax is an excise tax.
• B)A person earning $100,000 pays a higher percentage of her income in Social Security tax than someone earning $50,000.
• C)The Social Security tax is an indirect tax.
• D)None is true.

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Definitions:

Direct Labor-Hours

The total hours of labor directly involved in manufacturing a product, which are often used to allocate manufacturing overhead costs to products.

Direct Materials Cost

The cost of raw materials and components that are directly used in the production of a product.

Activity-Based Costing

A method of accounting in which costs are assigned to products or services based on the resources they consume.

Direct Labor-Hours

The collective work hours of personnel directly part of the production workflow.