Identify Which of the Following Statements Is False

question 57

Multiple Choice

Identify which of the following statements is false.

• A)The check-the-box regulations permit an LLC to be taxed as a C corporation.
• B)Under the check-the-box regulations, an LLC that has only two members (owners)must be taxed as a partnership.
• C)A business need not be incorporated under state or federal law to be taxed as a corporation.
• D)Once an election is made to change its classification, an entity cannot change again for 60 months.

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Definitions:

Standard Price

The predetermined cost that a company expects to pay for goods and services; used in budgeting and cost control.

Actual Materials

The real quantity and cost of materials used in the production process, as opposed to estimated or standard materials.

Material Price Variance

The difference between the actual cost of direct materials used in production and the standard cost of those materials.

Standard Purchase Price

The predetermined cost of acquiring goods, set for budgeting and costing purposes.