Which of the Following Is Not Excluded from Income

question 92

Multiple Choice

Which of the following is not excluded from income?

• A)public assistance payments
• B)fair market value of prize won on a game show
• C)gifts and inheritances
• D)life insurance proceeds paid by reason of death

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials or commission on sales.

Fixed Expenses

Costs that do not change with the level of production or business activity.

Unit Contribution Margin

The amount by which the selling price of a unit exceeds its variable costs, indicating how much it contributes to covering fixed costs and generating profit.

Fixed Expenses

Expenses that remain constant regardless of production or sales volume, including rent, salaries, and insurance.