Select the Appropriate Classification of Each of the Costs Listed

question 19

Multiple Choice

Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Sales commissions

• A)Variable cost
• B)Fixed cost

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Definitions:

Credit Carryforwards

Tax policy provisions allowing companies or individuals to use a net operating loss or tax credit from one fiscal period to reduce taxes in future periods.

Tax Losses

Financial losses that can be deducted from taxable income, ultimately reducing the amount of tax owed to the government.

Deferred Tax Liability

A tax obligation that arises from temporary differences between financial and tax reporting and is expected to be settled in future fiscal periods.

Consolidated SFP

Stands for Consolidated Statement of Financial Position, which is a financial report that aggregates the assets, liabilities, and equity of a parent company and its subsidiaries.