Which of the Following Statements Concerning Individual 401(k) S Is

question 46

Multiple Choice

Which of the following statements concerning individual 401(k) s is false?

• A)In general,individual 401(k) s have higher administrative costs than SEP IRAs.
• B)Employees cannot participate in individual 401(k) s.
• C)Individual 401(k) s are available only to self-employed taxpayers with 100 or fewer employees.
• D)Individual 401(k) s have contribution limitations.Individual 401(k) s are strictly for self-employed individuals who do not have employees.

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Definitions:

Predetermined Manufacturing Overhead Rate

A rate used to allocate estimated manufacturing overhead to individual jobs based on a predetermined activity, such as labor hours or machine hours.

Job C

A specific task, project, or assignment identified uniquely, usually within a job costing system.

Machine-Hours

A measure of production time where one machine-hour equals one machine working for one hour, used as an allocation base in costing.

Total Job Cost

The cumulative costs associated with a specific job or project, including materials, labor, and overhead.