The Adjusted Basis Can Be Defined As

question 26

Multiple Choice

The adjusted basis can be defined as:

• A) Original cost + capital improvements - accumulated depreciation
• B) Sales price - mortgage balance - sales costs
• C) Sales price - accumulated depreciation
• D) Original cost - mortgage balance - sales costs

---

Definitions:

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Unit Product Cost

The total cost incurred to produce, market, and distribute a single unit of a product.

Variable Costing

This is an accounting method that only includes variable costs—costs that change with production volume—in the calculation of product cost.

Total Contribution Margin

The difference between total sales revenue and total variable costs, indicating the total earnings available to cover fixed expenses and generate profit.