Costs That Cannot Be Changed by Any Decision Made Now

question 88

Multiple Choice

Costs that cannot be changed by any decision made now or in the future are:

• A)fixed costs.
• B)indirect costs.
• C)avoidable costs.
• D)sunk costs.

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Definitions:

Taxable Income

The amount of income used to determine an individual or corporation's income tax liability, after deductions and exemptions.

Accrued Warranty Costs

Costs anticipated for the future repair or replacement of products, recognized in financial statements before the costs are actually incurred.

Pretax Accounting Income

The income an organization has earned before any taxes have been deducted, used to calculate taxable income after adjusting for any differences between accounting and tax regulations.

Enacted Tax Rate

The tax rate established by law that is applied to income or transactions.