A Company That Loses Its Status as an S Corporation

question 138

True/False

A company that loses its status as an S corporation may not reelect this status for at least 5 years.

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Definitions:

Variable Cost-Plus

A pricing strategy that sets the selling price based on the variable costs of producing an item plus a fixed mark-up.

Total Cost-Plus

A pricing strategy where the selling price of a product is determined by adding a profit margin to the total cost of manufacturing or producing the product.

Mark-Up Percentage

A measure of how much the cost of a product is increased to arrive at its selling price, typically to cover overheads and profit.

Mark-Up Percentage

The percentage added to the cost price of products to determine the selling price, intended to cover overhead and profit.