Which of the Following Expenses Cannot Be Used to Reduce

question 17

Multiple Choice

Which of the following expenses cannot be used to reduce taxable corporate income?

• A) Cash dividends
• B) Depreciation expense
• C) Interest expense
• D)Administrative expenses

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Definitions:

ATC

Average total cost (ATC) is the total cost of production divided by the quantity of output produced, representing the cost per unit of output.

Marginal Cost

The supplementary expense involved in creating an additional unit of a product or service.

Marginal Revenue

The extra revenue a company earns by selling an additional unit of a product or service.

Competitive Market

A market structure characterized by many buyers and sellers where no single entity can dictate or significantly alter the market price.