A Cost Center Manager Should Be Evaluated by

question 180

Multiple Choice

A cost center manager should be evaluated by

• A)Examination of actual costs against budgeted costs.
• B)A review of both revenues and expenses,with a focus on operating income.
• C)How well assets have been used to generate income.
• D)None of these ans choices are correct.

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Definitions:

Positive Adjustment

An increase in the amount of reported income or expense, resulting in a higher taxable income.

AMTI

Alternative Minimum Taxable Income, which is calculated to ensure that taxpayers with large amounts of deductions, exemptions, and exclusions still pay a minimum amount of tax.

AMT Depreciation

Depreciation methods and rates that apply for the Alternative Minimum Tax, a parallel tax system to ensure certain taxpayers pay a minimum amount of tax.

Regular Tax Depreciation

A deduction that allows taxpayers to recover the cost of property used in a business or held for the production of income, computed under the regular tax system.