Tax Periodicals Are an Important Source of Information for the Tax

question 16

Multiple Choice

Tax periodicals are an important source of information for the tax practitioner.Which of the following is not true about tax periodicals?

• A)They may be cited as authority in disputes with the IRS during administrative review or appeal.
• B)They may give insight into recent court interpretations of tax laws.
• C)They may provide question and answer sections to ensure that the reader comprehends the concepts and ramifications of recent rulings.
• D)They generally offer concise summaries of new tax laws.
• E)They serve to convey new tax planning opportunities.

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the price of a product.

Idle Capacity

Unused or underutilized resources within a business, often indicating inefficiency, where machinery, space, or labor is not being employed to full capacity.

Variable Overhead Cost

Costs that vary with the level of production output, such as supplies and utilities for manufacture.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold, excluding fixed overhead costs.