Identify Which of the Following Statements Is False

question 17

Multiple Choice

Identify which of the following statements is false.

• A)If fraud is asserted in a tax transaction, the burden of proof falls on the IRS.
• B)The civil fraud penalty consists of 75% of the tax underpayment attributable to fraud plus 25% of the interest payable on the portion of the underpayment resulting from the fraud.
• C)The government must prove its case "beyond a reasonable doubt" in order for the court or jury to convict a taxpayer of criminal fraud.
• D)The fraud penalty can be imposed with respect to income, gift, and estate tax returns.

---

Definitions:

EOQ Model

Economic Order Quantity model, a formula used in inventory management to determine the optimal order size that minimizes total inventory costs.

Dependent Demand

The demand for components or raw materials that is directly tied to the demand for the final product they contribute to creating.

Production Order Quantity (POQ) Model

An inventory management model that determines the most economical quantity of a product to order or produce, balancing setup costs with holding costs.

EOQ Problem

Economic Order Quantity (EOQ) refers to the ideal order quantity a company should purchase to minimize inventory costs including holding, shortage, and order costs.