Which of the Following Statements Is True with Regard to Variances

question 15

Multiple Choice

Which of the following statements is true with regard to variances requiring investigation?
i. Favourable variances do not need to be investigated.
ii. Large variances should be investigated.
iii. Consistent trends in variances should be investigated.

• A) i
• B) ii
• C) i and ii
• D) ii and iii

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Definitions:

Overtime Rate

The rate of pay for work performed beyond the normal working hours, typically higher than the regular pay rate.

Total Wages

The sum of all compensation, including salaries and wages, paid to employees over a specified period.

FICA

The Federal Insurance Contributions Act, a U.S. law that mandates a payroll tax to fund Social Security and Medicare programs.

W-4 Form

A form used by employees to indicate their tax situations to employers, which helps determine the amount of federal income tax to withhold from wages.