One of the Tax Advantages of Being Self-Employed (Rather Than

question 163

Multiple Choice

One of the tax advantages of being self-employed (rather than being an employee) is:

• A)The self-employment tax is lower than the Social Security tax.
• B)The cutback adjustment does not apply.
• C)The actual cost method for deducting the business use of an automobile can be selected.
• D)Job-related expenses are deductions for AGI.
• E)A deduction for an office in the home is available.

Comprehend the concept of period costs and how they relate to the manufacturing process.

Distinguish between direct and indirect labor within the manufacturing environment.

Understand the significance of work in process inventory and its impact on manufacturing financials.

Interpret the relationship between factory overhead costs and the manufacturing process.

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