Which of the Following Statements Is Incorrect

question 40

Multiple Choice

Which of the following statements is incorrect?

• A)A SIMPLE plan is an employer-sponsored retirement plan.
• B)A payment to a beneficiary from a pension plan is called a distribution.
• C)Tax-deferred plans can be created for purposes other than retirement.
• D)Retirement plans are always funded with contributions that have not been taxed,so the withdrawals are taxed.

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Definitions:

Fixed Costs

Costs that do not change in total despite fluctuations in the volume of goods or services produced or sold.

Variable Costs

Charges that fluctuate according to the degree of business operations.

Cost-volume-profit Graph

A graphical representation that shows the relationship between a company's costs, its sales volume, and its profits, used for planning and decision-making.

CVP Graph

A visual representation of the Cost-Volume-Profit analysis, illustrating the relationship between costs (both variable and fixed), volume of production, and the resulting profit or loss.