Any Portion of a Partner's Distributive Share of Current Year

question 10

True/False

Any portion of a partner's distributive share of current year partnership loss that is a nondeductible passive activity loss does not reduce the partner's outside basis in the partnership interest.

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Definitions:

Direct Costing

A cost accounting method where only variable costs (direct materials, direct labor, variable manufacturing overhead) are included in product costs, fixed overhead costs are expensed in the period they are incurred.

Cost Of Goods Manufactured

The total cost of making and finishing a product.

Variable Manufacturing Costs

Expenses that vary proportionally with production volume, such as materials and labor.

Variable Costing

A costing method where only variable production costs are included in product costs, with fixed overhead costs treated as period expenses.