Some Items Are Typically Not Allowable Tax Deductions but Are

question 25

Multiple Choice

Some items are typically not allowable tax deductions but are recognised as an expense for accounting purposes.Which of the following items are of that type?

• A) research and development costs
• B) warranty costs
• C) sick leave payments
• D) entertainment

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Definitions:

Spending Variance

The difference between the actual amount of money spent and the budgeted amount for a particular cost category or department.

Planning Budget

A planning budget is used for guiding a company's spending and operational goals before the start of a financial period.

Other Expenses

Financial outlays that do not fit into standard cost categories, often including unusual or infrequent costs.

Spending Variance

The difference between the actual amount spent in a budget category and the amount that was originally budgeted, indicating over or under-spending.