Which One of the Following Statements About Letter Rulings Is

question 58

Multiple Choice

Which one of the following statements about letter rulings is false?

• A)If a taxpayer requests and pays for a ruling, the IRS must respond to his request by issuing a ruling.
• B)A ruling is a response to a taxpayer's specific set of facts.
• C)Rulings become public information.
• D)The IRS issues revenue procedures periodically, which prescribe the information that must be supplied with a ruling request.

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Definitions:

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or output.

Total Variable Cost

The sum of all costs that vary with the level of output produced by a company.

Fixed Costs

Costs that do not vary with the level of production or sales.

Short Run

A period in which at least one input, such as plant size or the number of firms in the market, is fixed and cannot be changed.