Which Tax Form Would You Select for a Partnership

question 12

Multiple Choice

Which tax form would you select for a Partnership?

• A)Form 1120
• B)Form 1120S
• C)Form 1065
• D)Form 1040S

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Definitions:

Flexible Budget

A flexible budget adjusts expenses based on changes in actual revenue or other activities, allowing for more accurate budgeting and variance analysis.

Variable Costs

Expenses that vary in direct proportion to changes in activity levels or volumes, such as raw materials and direct labor costs.

Fixed Costs

Costs that remain constant in total regardless of changes in the activity level within a relevant range.

Fixed Costs

Costs that do not vary with the level of output or sales in the short term, such as lease payments, insurance, and salaries of permanent staff.