Which of the Following Is True About Intraperiod Tax Allocation

question 57

Multiple Choice

Which of the following is true about intraperiod tax allocation?

• A) It arises because certain revenue and expense items appear in the income statement either before or after they are included in the tax return.
• B) It is required for the cumulative effect of accounting changes but not for prior period adjustments.
• C) Its purpose is to allocate income tax expense evenly over a number of accounting periods.
• D) Its purpose is to relate the income tax expense to the items which affect the amount of tax.

Learn the components of the total cycle time and how lean principles affect cycle efficiency.

Understand the concept of value streams within lean manufacturing.

Recognize the differences between push and pull production systems.

Learn how to calculate the ending balance in finished goods inventory.

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Definitions:

Overhead

An ongoing expense of operating a business, such as rent, utilities, and salaries.

Break-even Price

The price level at which the revenues for a product or service equal the costs, resulting in neither profit nor loss.

Markdown

A reduction from the original or previous retail price of a product.

Rate

A measure, quantity, or frequency, typically one measured against another quantity or measure.