The Look-Back Period Is Used to Determine Whether

question 68

Multiple Choice

The look-back period is used to determine whether:

• A)a business should make its Form 941 tax deposits on a monthly or semiweekly basis.
• B)an employer will use Form 940.
• C)an employer has sent the W-2s to their employees on timely basis.
• D)an employer must pay unemployment taxes.

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Definitions:

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold, excluding fixed overhead.

Operating Income

The profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.

Segment Margin

The amount of profit or loss generated by a particular segment of a business after accounting for the direct and indirect costs associated with that segment.

Segmented Income Statement

An income statement that breaks down revenue, expenses, and profit by individual segments of the business.