You Are Working at a Tax Office That Completes Personal

question 41

Multiple Choice

You are working at a tax office that completes personal tax returns for a fee.Your boss asks you to estimate how much it would cost to open a second office in response to increased demand.What will you create for your boss?

• A)Fee budget
• B)Revenue budget
• C)Expense budget
• D)Capital expenditures budget

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Definitions:

Variable Costing

A bookkeeping approach that incorporates just the variable costs of production such as direct materials, direct labor, and variable manufacturing overhead into the costs of products.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) divided by the number of units produced.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable overhead) in product cost calculations, excluding fixed manufacturing overhead.

Net Operating Income

Net Operating Income (NOI) is the total pre-tax profit a company generates from its operations, excluding expenses such as interest and taxes.