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What Is the Difference Between a "Directly-Related" and an "Associated

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Essay

What is the difference between a "directly-related" and an "associated with" business expense classified as entertainment? How did the deduction for business entertainment change for 2018?


Definitions:

Direct Labor Cost

The total cost of all labor directly involved in the production of goods or services.

Standard Cost System

An accounting framework where standard costs are used for cost control and decision making, typically involving the setting of predetermined costs for products and services.

Labor Efficiency Variance

The difference between the actual labor hours used in production and the standard labor hours expected, multiplied by the labor rate.

Work in Process

Goods partially completed during the manufacturing process, not yet ready for sale.

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