Which of the Following Statements About the Character Variable Is

question 3

Multiple Choice

Which of the following statements about the character variable is true?

• A) The tax character of income is determined strictly by tax law.
• B) The tax character of income cannot change from year to year.
• C) Tax planning strategies based on the character variable must involve at least two different taxpayers.
• D) The tax character of income cannot change from year to year and tax planning strategies based on the character variable must involve at least two different taxpayers.

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Definitions:

Data Period

A specified duration of time for which data is gathered and analyzed.

Direct Materials Cost Variance

The difference between the budgeted cost of materials and the actual cost incurred for materials used in production.

Standard Materials Cost

The budgeted or estimated cost of raw materials required for production, used for cost control and variance analysis.

Material Used

The raw materials that have been consumed in the production process to create goods.