The tax sheltered prgrma to encourage self employed people to acculumlate reitment funds is called Keogh plan.
A Keogh plan is a tax-deferred pension plan available to self-employed individuals or unincorporated organizations for retirement functions. A Keogh plan can be set up as both a defined-benefit plan or a defined-contribution plan, though maximum plans are set as the latter. A Keogh plan is a type of retirement investment account for self-employed people and business owners. Contributions to a Keogh plan are made pre-tax, while withdrawals in retirement face income tax. Positive sorts of Keogh plans may have higher contribution limits than other retirement debts.
A Keogh plan (is a tax-deferred pension account for self-employed people and employees of unincorporated businesses. Like IRAs, an worker can also put almost available investment into a Keogh plan, and the investment earnings develop on a tax-deferred basis.
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Answer:
Explanation:
You need to use the formula to calculate the future value of a constant annual deposit:
![Future\text{ }value=Deposit\times \bigg[\dfrac{(1+r)^n-1}{r}\bigg]](https://tex.z-dn.net/?f=Future%5Ctext%7B%20%7Dvalue%3DDeposit%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B%281%2Br%29%5En-1%7D%7Br%7D%5Cbigg%5D)
Where r is the expected percent return, and n the number of years.
<em><u>1. For a deposit of $30,800 at the end of each year for the next 11 years, with 7% interest.</u></em>
You will have saved:
![Future\text{ }value=\$ 30,800\times \bigg[\dfrac{(1+0.07)^{11}-1}{0.07}\bigg]](https://tex.z-dn.net/?f=Future%5Ctext%7B%20%7Dvalue%3D%5C%24%2030%2C800%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B%281%2B0.07%29%5E%7B11%7D-1%7D%7B0.07%7D%5Cbigg%5D)
<em><u>2. For a deposit of $33,300 each year, for the same number of years and with the same interest rate.</u></em>
You will have saved:
![Future\text{ }value=\$ 33,300\times \bigg[\dfrac{(1+0.07)^{11}-1}{0.07}\bigg]](https://tex.z-dn.net/?f=Future%5Ctext%7B%20%7Dvalue%3D%5C%24%2033%2C300%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B%281%2B0.07%29%5E%7B11%7D-1%7D%7B0.07%7D%5Cbigg%5D)
<em><u>3. For a deposit of $30,800 each year, but with 11 percent interest, for 11 years.</u></em>
![Future\text{ }value=\$ 30,800\times \bigg[\dfrac{(1+0.11)^{11}-1}{0.11}\bigg]](https://tex.z-dn.net/?f=Future%5Ctext%7B%20%7Dvalue%3D%5C%24%2030%2C800%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B%281%2B0.11%29%5E%7B11%7D-1%7D%7B0.11%7D%5Cbigg%5D)
Create test plan, develope scenarios, implement, summarize feedback, and retest.
Question
When evaluating a special order, management should:
Group of answer choices
A) Only accept the order if the incremental revenue exceeds all product costs. B) Only accept the order if the incremental revenue exceeds fixed product costs.
C) Only accept the order if the incremental revenue exceeds total variable product costs.
D) Only accept the order if the incremental revenue exceeds full absorption product costs.
Answer:
The correct answer is A)
Explanation:
When deciding whether or not to accept an order, the following questions must be asked:
- does the company have the capacity to fulfill the order? or will it require that they expand current capacity?
- does the price offered for the order cover the order cover the costs of producing same?
- Will an attempt to satisfy the order under the given conditions trigger a violation of the Act which prohibits price discrimination?
- Does it require the company to produce at a lower price in order to be profitable? if so how will the market percieve this? Will it mar the company's brand?
One generally accepted rule is that all costs must covered.
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