Living Trusts May Be

question 2

Multiple Choice

Living trusts may be

• A) charitable.
• B) revocable.
• C) irrevocable.
• D) All of the answers are correct.

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Definitions:

Period Cost

Expenses that are incurred in a specific accounting period but not directly tied to the production process, such as administrative and selling expenses.

Direct Cost

Expenses that can be directly traced to the production of specific goods or services, such as raw materials and labor.

Indirect Cost

Costs associated with operations that cannot be directly linked to a specific product, service, or project (e.g., utilities, rent, and managerial salaries).

Period Cost

Expenses not directly tied to the production of goods, thereby charged to the accounting period in which they occur.