Income Before Tax on the Income Statement Is

question 131

Multiple Choice

Income before tax on the income statement is:

• A)income tax payable.
• B)net income.
• C)pretax accounting income.
• D)taxable income.

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Definitions:

Job Order Cost System

This system is a cost accounting method that assigns costs to specific production batches or jobs, making it easier to track the financial resources spent on each job.

Underapplied Manufacturing Overhead

The situation where the allocated manufacturing overhead costs are less than the actual costs incurred.

Overapplied Manufacturing Overhead

The condition where the allocated manufacturing overhead costs exceed the actual overhead expenses incurred during a period.