In 2019, T Corporation Changed Its Tax Year from Ending

question 73

True/False

In 2019, T Corporation changed its tax year from ending each April 30 to ending each December 31.The corporation earned $60,000 during the period May 1, 2019 through December 31, 2019.The annualized income for the short year is $90,000.

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Definitions:

Variable Cost

Costs that vary in direct proportion to changes in levels of production or sales, such as materials and labor directly involved in a product's manufacturing.

Units Sold

The total number of units of product sold within a specific time frame.

Conversion Costs

Costs that are incurred to convert raw materials into finished goods, which typically include labor and manufacturing overhead expenses.

Relevant Costs

Costs that should be considered when making business decisions because they will be affected by the decision.