Comparative Income Statements for Tudor Retailing Company for the Last

question 75

Multiple Choice

Comparative income statements for Tudor Retailing Company for the last two months are presented below: Which of the following classifications best describes the behavior of clerical expense?

• A)Mixed
• B)Variable
• C)Fixed
• D)none of these

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Definitions:

Personal Property Taxes

Taxes levied by local governments on the value of personal property such as vehicles, boats, and equipment.

FICA Taxes

Federal taxes required to be deducted from employees' wages for Social Security and Medicare, also paid in part by employers.

Adjusted Gross Income

The measure of one's taxable income, calculated as gross income minus allowable adjustments.

Deductible Contribution

A contribution to a qualified plan or account that is eligible to be deducted from the contributor's gross income for tax purposes.