All of the Following Items Are Excluded from Gross Income

question 2135

Multiple Choice

All of the following items are excluded from gross income except

• A) no additional cost benefits for employees.
• B) working condition benefits.
• C) disability income from an employer- financed policy.
• D) de minimis benefits.

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Definitions:

Fixed Overhead

Indirect costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Budget Variance

The difference between budgeted or planned financial activity and the actual financial performance.

Fixed Overhead

Costs that do not change with the level of production or business activity, such as rent, salaries of permanent staff, and insurance.

Volume Variance

The difference between the budgeted and actual volume of units sold or produced, impacting direct materials, direct labor, and overhead costs.