Which of the Following Expenses, If Any, Are Deductible

question 84

Multiple Choice

Which of the following expenses, if any, are deductible?

• A)Safety shoes purchased by a plumber employed by a company.
• B)Bottled water purchased by a gig driver for passengers.
• C)Unreimbursed employee expenses.
• D)Tax return preparation fee paid by a nonemployed retiree.
• E)None of these.

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Definitions:

Machine Breakdowns

Unplanned events where machinery or equipment fails to function correctly, leading to production delays, increased maintenance costs, and potential operational losses.

Increase In Utility Costs

A rise in the expenses associated with utilities such as electricity, water, and gas consumed by a business or individual.

Purchase Price Variances

Differences between the actual cost of materials purchased and the expected (budgeted) cost, often analyzed in cost accounting.

Standard Cost

A predetermined cost of manufacturing a product or providing a service, used as a benchmark to measure actual performance and efficiencies.