Estate Planning Involves

question 70

Multiple Choice

Estate planning involves:

• A)considering how your wealth can be most effectively passed on to your heirs.
• B)payment of all back taxes to ensure minimum tax liability.
• C)the dissolution of all privately held corporations by filing bankruptcy under Chapter 13.
• D)the valuation and auctioning of your valuables by hiring a professional tax planner.
• E)planning for retirement and obtaining medical insurance.

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Definitions:

Variable Selling Expense

Expenses that vary with sales volume, including commissions and shipping charges.

Fixed Selling Expense

Costs associated with selling which remain constant regardless of the level of sales.

Variable Administrative Expense

Costs that vary with changes in the level of an organization's activity, related to administrative functions.

Contribution Margin

The revenue remaining after subtracting variable costs, which can then be used to cover fixed expenses and provide profit.