When Support Is Provided in a Form Other Than a Current

question 47

True/False

When support is provided in a form other than a current cash expenditure (e.g., a home in which the dependent is living), it is the cost of the support item that is considered in determining whether the support test is met.

---

Definitions:

Direct Labor Cost

The total cost of workforce directly involved in the production of goods or services, excluding indirect labor such as administration.

Variable Costing

A costing technique that only assigns variable production costs to inventory, helping managers understand the impact of production levels on total costs.

Net Operating Income

The income produced through a firm's regular commercial activities, not including taxes and interest.

Variable Costing

A record-keeping system in accounting that inputs only variable production-related expenses (direct materials, direct labor, and variable manufacturing overhead) into the cost evaluation of goods.