Which of the Following Is a True Statement About Travel

question 15

Multiple Choice

Which of the following is a true statement about travel that has both business and personal aspects?

• A) Transportation costs are always fully deductible.
• B) Meals are not deductible for this type of travel.
• C) Only half of the cost of meals and transportation is deductible.
• D) The cost of lodging, and incidental expenditures is limited to those incurred during the business portion of the travel.
• E) None of these

---

Definitions:

Finished Goods Inventory

This represents the stock of completed products that are ready to be sold but have not been sold yet.

WIP Inventory

Work in Process Inventory, representing the cost of unfinished goods in the production process.

Variable Product Cost

Costs that change in direct proportion to the level of production, such as materials and direct labor.

Fixed Period Cost

A type of cost that does not change with the level of production or sales over a certain period of time.