Match Each of the Following Terms with the Appropriate Description

question 35

Multiple Choice

Match each of the following terms with the appropriate description in the state income tax formula. Apply the
UDITPA rules in your responses.
-Federal general business credit.

• A)Addition modification
• B)Subtraction modification
• C)No modification

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Definitions:

Equivalent Unit

In cost accounting, it represents a measure that converts the work done on partial units of output into the amount of completed units that could have been produced with that amount of work.

Weighted Average Method

An inventory costing method that averages out all costs of inventory available for sale during the period and assigns an average cost to each unit sold.

Applied Overhead

An accounting method that allocates estimated overhead costs to specific jobs or production units based on a predetermined rate or formula.

Direct Labor

Wages or costs directly associated with workers who are involved in the production of goods or services.