Which of the Following Is True of a Living Trust

question 2

Multiple Choice

Which of the following is true of a living trust?

• A) It comes in to effect after the death of the grantor.
• B) It helps reduce the grantor's income tax.
• C) It can be revoked during the grantor's lifetime.
• D) It is considered a public record subject to probate proceedings.

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Definitions:

Fixed Maintenance Cost

The portion of total maintenance costs that does not fluctuate with changes in activity level or output.

Machine-Hours

The total hours that a machine is operated over a specific period of time, used in allocating manufacturing costs.

Relevant Range

The scope of operations in which the beliefs regarding constant and fluctuating cost patterns hold true.

Cost Formula

An equation used to predict the total costs associated with a certain level of activity or production volume.