Indicate Whether Each of the Items Listed Below Would Be

question 61

Multiple Choice

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2019 tax year.
-Life insurance proceeds received upon the death of a family member

• A)Included
• B)Excluded

---

Definitions:

Margin of Safety

The difference between actual or projected sales and the break-even point, often expressed as a percentage.

Contribution Margin Ratio

A financial metric showing the percentage of revenue that exceeds total variable costs, indicating how much revenue contributes to fixed costs and profit.

Break-even Sales

The amount of revenue needed to cover all fixed and variable costs, resulting in no profit or loss.

Variable Cost

Costs that change in proportion to the level of production or sales activity, such as raw materials and direct labor costs.