Bonuses Given by Employers Must Be Reported to the IRS

question 119

True/False

Bonuses given by employers must be reported to the IRS on your income tax return.

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Definitions:

Denominator Activity

The level of activity used to compute the predetermined overhead rate.

Applied Factory Overhead

The portion of factory overhead costs assigned to each unit of production, based on an estimated or predetermined rate.

Electrical Motor

A device that converts electrical energy into mechanical energy, commonly used in appliances, industrial equipment, and vehicles.

Manufacturing Overhead

includes all indirect costs associated with the production process, such as utilities, maintenance, and salaries of non-direct labor.