Section 1: Managing Payroll
Section 2: Managing Inventory
Math
Section 1 Vocabulary
Section 2 Vocabulary
100
What is the first step in a Payroll system?
Calculating the total earnings of all employs for the pay period.
100
Why is it important to keep close track of inventory?
This system tracks the quantity and cost of merchandise purchased, the merchandise in stock, and the merchandise sold to customers.
100
Olivia Chun is paid a weekly salary of $150 plus 5% commission on all sales. If she made $3,725 in one week what is her commission for the week?
$186.25
100
A list of employees and the payments due to each employee for a specific period of time.
Payroll
100
Is a system that keeps a constant, up-to-date record of merchandise on hand.
Perpetual Inventory System
200
FICA includes two types of tax. What are they?
Social Security tax, and Medicare tax
200
Why is having too little inventory bad for business?
Because the purchase of merchandise often requires large amounts of money, it has a great impact on cash flow.
200
Bobby is paid a weekly salary of $300 plus a 15% commission on all merchandise. If he makes $10,000 in sales how much were his gross earnings for the week?
$1,800
200
The total amount of money an employee earns in a pay period is the......
Gross Earnings
200
Is a system in which inventory records are updated only after someone makes an actual physical count of the merchandise on hand.
Periodic Inventory System
300
Some employees choose to have voluntary deductions come from their paycheck each week. Name two examples of these.
Health or life insurance, union dues, contributions to charities, pensions and other retirement plans, direct deposits to a credit union or bank. (any two of these)
300
What are stages of merchandise?
1. Ordering merchandise 2. Storing 3. Displaying 4. Selling
300
If your gross earnings for the month are $550, how much would be deducted from your paycheck for FICA taxes?
$29.07
300
Is a fixed amount of money paid to an employee for each pay period, regardless of the number of hours worked.
A Salary
300
Is an inventory costing method in which the exact cost of each item is determined and assigned to an item.
Specific Identification Method
400
What are employees expected to do when preparing payroll records? Name three expectations.
Calculate earnings and deductions correctly, distribute employee paychecks on time, keep accurate payroll records, pay all taxes owed to government agencies on time, file all required payroll reports to government agencies on time. (Any three)
400
What systems help determine amount of inventory in stock?
A perpetual inventory system, a periodic inventory system
400
If your gross earnings for the month are $1,500 how much would be deducted for FICA taxes?
$114.75
400
Is an amount of money paid to an employee based on a percentage of the employee's sales.
A Commission
400
Is an inventory costing system that assumes the first items purchased are the first items sold.
First-In, First-Out Method
500
What are the benefits of direct deposit?
The employee's pay is deposited directly into their bank account so they do not have to prepare a check or worry about cashing it. Their funds are usually available faster too.
500
Is it better to have high or low inventory turnover?
Low.
500
If two employees get paid a salary of $700 and $1,000 a week and two different employees get paid a set rate of $10/hr and work 40 hours a week how much will the gross pay be for one week?
$2,500
500
Established the present Social Security system in 1935.
The Federal Insurance Contributions Act.
500
Is a costing method that assumes the last items purchased are the first items sold.
Last-In, First-Out Method
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