Proper Payroll Accounting Methods Are Important for a Business for All

question 65

Multiple Choice

Proper payroll accounting methods are important for a business for all the reasons below except

• A) good employee morale requires timely and accurate payroll payments.
• B) payroll is subject to various federal and state regulations.
• C) to help a business with cash flow problems by delayed payments of payroll taxes to federal and state agencies.
• D) payroll and related payroll taxes have a significant effect on the net income of most businesses.

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Definitions:

Work in Process

Inventory category that includes goods that are in the production process but are not yet complete.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Underapplied Overhead

Occurs when the allocated manufacturing overhead cost is less than the actual overhead incurred, leading to a shortfall in cost coverage.

Work in Process

Inventory that includes goods partially through the manufacturing process but not yet completed.