Techniques That Can Be Used to Minimize the Current Period

question 24

Multiple Choice

Techniques that can be used to minimize the current period tax liability include:

• A)Recognizing the interaction between the regular income tax liability and the alternative minimum tax liability.
• B)Utilization of special allocations.
• C)Favorable treatment of certain fringe benefits.
• D)Minimizing double taxation.
• E)All of the above.

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Definitions:

Departments

Divisions within an organization or company, each responsible for specific areas of operation or functions.

Allocating Expenses

The process of assigning costs to various accounts or departments within a company.

Perceived as Fair

A term used to describe the general judgment by individuals or groups that an action, decision, or policy is just, equitable, or reasonable.

Joint Cost

Costs incurred during the process of producing two or more products at the same time, where the costs cannot be easily separated for each product.