The Program Specifically Designed to Identify Returns with a High

question 49

Multiple Choice

The program specifically designed to identify returns with a high potential for a deficiency assessment is the

• A)TCMP.
• B)DIF program.
• C)instant audit program.
• D)1040 program.

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Definitions:

Economic Profit

The profit a firm makes after subtracting both its explicit (out-of-pocket) and implicit (opportunity) costs.

Total Costs

The aggregate amount of all expenses associated with the production of a good or service, including both fixed and variable costs.

Implicit Costs

These are the costs of using resources owned by the company for production that aren't directly paid for or incurred as a clear expense.

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.