Thomas Franklin Claimed an Additional $3,000 in Deductions He Knowingly

question 60

Multiple Choice

Thomas Franklin claimed an additional $3,000 in deductions he knowingly knew he did not qualify for so he could reduce his tax bill.This is referred to as tax:

• A)avoidance.
• B)acceleration.
• C)evasion.
• D)delaying.
• E)deferment.

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Definitions:

Direct Labor

The cost of wages and benefits for employees directly involved in the production of goods or services.

Overhead Applied

The portion of overhead costs assigned to the production of goods or services.

Raw Materials Issued

The allocation or distribution of raw materials for use in the production process.

Labor Time Tickets

Paper or electronic forms used to track the amount of time a worker spends on a particular job or project, utilized for cost accounting and payroll purposes.