A Deduction Will Be Allowed for an Expenditure Unless the Internal

question 58

True/False

A deduction will be allowed for an expenditure unless the Internal Revenue Code specifically disallows it.

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Definitions:

Machine Hour

A unit of measure representing the operation of a machine for one hour, used in costing and budgeting for manufacturing.

Fixed Overhead Volume Variance

The difference between the budgeted fixed overhead costs and the fixed overhead costs actually allocated to produced goods, based on standard activity levels.

Overapplied

In cost accounting, refers to a situation where the allocated manufacturing overhead is more than the actual overhead incurred.

Underapplied

A situation in which the allocated or applied costs in accounting are less than the actual costs incurred.