Which of the Following Are Legal Methods of Reducing Your

question 26

Multiple Choice

Which of the following are legal methods of reducing your current tax liability?

• A)not reporting taxable income you receive
• B)investing in a tax deferred annuity
• C)shifting income to your children
• D)writing off deductions above the actual amount(s) spent
• E)b and c

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Definitions:

Throughput

The time required to move orders through the production process, from receipt to delivery.

Rated Capacity

The maximum amount of output that a system, facility, or machine is designed to produce under specified conditions.

Expected Output

The anticipated quantity or result produced by a process or system within a certain period.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance premiums, over a specified period.