Which Term Refers to Individual Employee Accounts Funded by the Employer,the

question 53

Multiple Choice

Which term refers to individual employee accounts funded by the employer,the employee,or both based on rules specified in Section 125 of the Internal Revenue Code?

• A) Core-plus option plan
• B) Modular plan
• C) Flexible spending account
• D) Health savings account

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Definitions:

Flexible Budget

A flexible budget adjusts according to the actual levels of activity experienced, allowing for more accurate comparisons of budgeted to actual performance.

Static Budget

A budget that is set for a specific level of activity and does not change or adjust with the actual level of activity achieved.

Fixed Manufacturing Overhead

The set costs involved in producing a product that do not change with the level of production, such as rent, salaries, and utilities.

Master Budget

A comprehensive financial plan comprising various individual budgets covering all facets of an organization's operations.