Which of the Following Is Not an Addition to Trust

question 57

Multiple Choice

Which of the following is not an addition to trust taxable income when computing distributable net income (DNI) ?

• A)distribution deduction
• B)capital gains allocated to principal
• C)tax-exempt interest
• D)personal exemption

Identify and explain the different types of variances, including price, quantity, rate, time, and volume variances.

Apply variance analysis in the context of managerial accounting to control costs and improve operational efficiency.

Interpret the significance of favorable and unfavorable variances in standard costing.

Differentiate between fixed and variable overhead costs and their impact on costs control.

---

Definitions:

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services, reflecting in the cost of goods sold.

Materials Price Variance

The difference between the actual cost and the standard cost of materials used in production.

Standard

A recognized level of quality or attainment that is used as a benchmark for comparison.

Materials Quantity Variance

The difference between the expected amount of materials needed for production and the actual amount used, affecting production costs.