Match Each Statement with the Correct Term Below

question 87

Multiple Choice

Match each statement with the correct term below.
-Home office deduction

• A)Automobile used 75% for business.
• B)Investment interest expense on loan to acquire municipal bonds.
• C)Cost of investigating a new trade or business that the taxpayer enters.
• D)Can be separated into two classifications.
• E)Expenses related to royalty income
• F)Expenditure to influence legislation.
• G)Cost of a new roof for office building.
• H)Relates to an income producing activity mainly carried on for recreation or personal enjoyment.
• I)Deductibility depends on income and amount of personal and rental use.
• J)Deductibility depends on whether the area is used exclusively for trade or business activities.

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Definitions:

Cost Per Equivalent Unit

A calculation used in process costing, dividing the total cost by the number of units produced to determine the cost per unit.

Conversion Costs

Costs required to convert raw materials into finished products, usually including direct labor and manufacturing overhead.

Conversion Costs

The costs required to convert raw materials into finished goods, which typically include direct labor and manufacturing overhead.

Total Cost Transferred

The aggregate expense shifted from one account or department to another, often used in manufacturing to denote the total cost moved from work in process to finished goods.