The chief executive officer earns $20,700 per month. As of May 31, her gross pay was $103,500. The tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7000 of an employee's pay. What is the amount of FICA - Medicare withheld from this employee for the month of June?
A. $300.15
B. $277.64
C. $641.70
D. $7604.15
E. $1283.40
Answer: A
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After obtaining an understanding of internal controls and assessing control risk of an entity, an auditor decided not to perform tests of controls for purposes of the audit. The auditor most likely decided that:
A. the assessed level of inherent risk exceeded the assessed level of control risk. B. a reduction in the assessed level of control risk is justified for certain financial statement assertions. C. it would be inefficient to perform tests of controls that would result in a reduction in planned substantive procedures. D. the available evidential matter obtained through tests of controls would not support an increased level of control risk.
The essence of strategy is innovation, so _____ is often gained when an organization tries a strategy that no one has tried before.
Fill in the blank(s) with the appropriate word(s).
Colossal Beverages Company sells two products, A and B. Mist predicts that it will sell 2500 units of A and 2000 units of B during the next period. The unit contribution margins are $4.00 and $4.80 for products A and B, respectively. What is the weighted-average unit contribution margin? (Round your answer to the nearest cent.)
A) $4.36 B) $4.40 C) $4.44 D) $8.80
________ refers to a business buying situation in which the buyer purchases a product or service for the first time
A) Modified rebuy B) Straight rebuy C) New task D) Reverse auction E) Derived demand