The Income Shifting Tax Strategy Is Least Effective When Income

question 92

Multiple Choice

The income shifting tax strategy is least effective when income producing gifts are given to persons

• A) over age 65.
• B) over age 50.
• C) under age 14.
• D) under age 25.
• E) Age is not an issue.

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Definitions:

Total Overhead Variance

The difference between the actual overhead costs incurred and the overhead costs that were budgeted or applied based on a standard cost system.

Overhead Controllable Variance

Overhead controllable variance refers to the difference between expected controllable overhead costs and the actual costs directly managed by a department or manager.

Overhead Volume Variance

A measure used to evaluate the difference between expected and actual overhead costs, based on the volume of goods produced.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost that was expected or budgeted.