Making Use of Legitimate Methods to Reduce One's Taxes Is

question 38

Multiple Choice

Making use of legitimate methods to reduce one's taxes is called tax ____________.

• A)evasion
• B)planning
• C)exemptions
• D)deferred techniques
• E)reductions

---

Definitions:

Net Operating Income

The profit generated from a company's regular, core business operations, excluding deductions of taxes and interest.

Unit Product Cost

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

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of a product.

Unit Product Cost

The total cost assigned to a single unit of product, including direct materials, direct labor, and allocated overhead.