The Social Security Trust Fund Is The

question 358

Multiple Choice

The Social Security trust fund is the:

• A)cash held in a savings account by the government.
• B)government bonds held by the Social Security system.
• C)money held by the government from the Medicare tax.
• D)interest earned over time by the money from Social Security taxes.

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Definitions:

Variable Costing

A method of accounting that exclusively accounts for variable production expenses—direct materials, labor directly assigned to production, and variable manufacturing overhead—when calculating the cost of products.

Absorption Costing

An accounting method that includes all manufacturing costs, both fixed and variable, in the cost of a product, required for external reporting in many jurisdictions.

Ending Inventory

The total value of all unsold goods still available in stock at the end of an accounting period.

Absorption Costing

A calculation method in accounting that compiles all production-related costs, namely direct materials, direct labor, and every overhead cost (both variable and fixed), into the product's pricing.