Which of the Following Is Subtracted from Gross Income to Arrive

question 15

Multiple Choice

Which of the following is subtracted from gross income to arrive at ordinary gross income (OGI) ?

• A)Capital losses
• B)Section 1231 gains
• C)Charitable contributions in excess of the amount deductible
• D)Interest on tax refunds
• E)None of the above

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, valued at standard cost.

Favorable

A term used in variance analysis indicating that actual costs were lower than budgeted or standard costs, leading to higher profits.

Unfavorable

A term used in variance analysis to describe a situation where actual results are worse than expected results, often leading to a negative impact on financial performance.

Raw Materials Price Variance

This variance highlights the difference between the actual cost of raw materials used in production and the standard or expected cost.