According to the Internal Revenue Code §162,deductible Trade or Business

question 15

Multiple Choice

According to the Internal Revenue Code §162,deductible trade or business expenses must be one of the following?

• A) incurred for the production of investment income.
• B) ordinary and necessary.
• C) minimized.
• D) appropriate and measurable.
• E) personal and justifiable.

---

Definitions:

Unit Product Cost

The total cost associated with producing one unit of a product, including direct and indirect costs.

Variable Costing Income Statement

A financial statement that only includes variable production costs in the cost of goods sold, with fixed production costs treated as period expenses.

Absorption Costing

In this accounting technique, all manufacturing-related costs - direct materials, direct labor, variable, and fixed overheads - are factored into the product's cost.

Variable Production Costs

Costs that change in proportion to the level of production activity, such as raw materials and direct labor.