To Attain a Target Profit,the Total Gross Margin Generated from Sales

question 123

True/False

To attain a target profit,the total gross margin generated from sales must be sufficient to cover total fixed costs plus the target profit.

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Definitions:

Deductible Temporary Difference

Differences between the carrying amount of an asset or liability in the balance sheet and its tax base that will result in amounts deductible in future periods when recovering the carrying amount.

Deferred Tax Asset

An asset on the balance sheet that may be used to reduce future tax liability generated due to timing or temporary differences between accounting income and taxable income.

Future Tax

Taxes that are anticipated to be paid or recovered in future periods, often considered in financial projections and planning.

Deferred Tax Assets

These are amounts of income taxes recoverable in future periods due to deductible temporary differences, carry-forward of unused tax losses, and carry-forward of unused tax credits.