What Are the Key Components of Tax Planning

question 13

Essay

What are the key components of tax planning?

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Definitions:

Marketing Costs

Expenses related to promoting and selling products or services, including advertising, product promotion, and sales force expenses.

Design Costs

The expenses associated with the conceptualization and development phases of product creation, including research, design, and prototyping.

Research and Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the invention of new products and procedures.

Proration

The allocation of costs or revenues among departments, products, or periods based on a fair and equitable basis.