Kickbacks and Bribes Paid to Federal Officials Are Deductible Only

question 41

True/False

Kickbacks and bribes paid to federal officials are deductible only if related to the taxpayer's trade or business.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Fixed Manufacturing Overhead

The portion of manufacturing costs that do not vary with the level of production, such as salaries of supervisors and rent for factory buildings.

Variable Costing

A costing method that includes only variable production costs in the cost of goods sold, excluding fixed manufacturing overhead.

Absorption Costing

A method of product costing that captures all costs associated with manufacturing a product, including overhead expenses.