FIFO Tends to Decrease Taxes When

question 39

Multiple Choice

FIFO tends to decrease taxes when

• A)costs are increasing.
• B)costs are decreasing.
• C)costs are constant.
• D)FIFO will always yield the lowest possible taxes.
• E)Impossible to determine without specific cost data

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Definitions:

Personnel Expenses

Costs incurred by a company to employ its workforce, including wages, benefits, and taxes.

Client-visits

Client-visits refer to the occasions on which a service provider or salesperson goes to see clients in their place of business or home.

Activity Variance

The discrepancy between what was planned to be spent on an activity and what was actually spent.

Budgeting

The act of designing a budget to allocate your finances, enabling you to predict beforehand if you'll possess sufficient funds to cover necessary or desired activities.