Which of the Following Statements About the Social Security Tax

question 170

Multiple Choice

Which of the following statements about the Social Security tax is not true?

• A)It is a progressive tax.
• B)It came into existence in 1935.
• C)It is imposed on employers and employees.
• D)It is a payroll tax.

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Definitions:

Variable Costing

An accounting method that only considers variable costs in determining the cost of goods sold and in calculating contribution margin.

Unit Product Cost

The total expense incurred to produce, store, and sell one unit of a product, including direct materials, direct labor, and manufacturing overhead.

Variable Costing

An accounting method in which costs that vary directly with the level of production output are charged to product units.

Net Operating Income

The total profit of a company after operating expenses but before subtracting interest and taxes.