Selecting a Volume- Related Cost Driver and Classifying Each Account

question 120

Multiple Choice

Selecting a volume- related cost driver and classifying each account as a variable cost or a fixed cost is called:

• A) high- low analysis
• B) visual- fit analysis
• C) account analysis
• D) engineering analysis

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Definitions:

Taxpayer

An individual or entity that is obligated to make payments to municipal or government taxation agencies.

Single

A filing status for a taxpayer who is unmarried and does not qualify for other filing statuses like Head of Household.

Failure To File Penalty

A penalty imposed by tax authorities for not filing a required tax return by the due date.

Tax Liability

The total amount of tax that an individual or entity is legally obligated to pay to a taxing authority.