Which of the Following Statements About Tangible Property Is True

question 9

Multiple Choice

Which of the following statements about tangible property is true?

• A) It has no physical existence.
• B) It is subject to tax in the state in which it is located.
• C) It is only owned by the government or a government unit.
• D) It is only taxable in the state where its owner lives.

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Definitions:

Machine Hours

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and efficiency.

Fixed Overhead Volume Variance

The difference between the budgeted fixed overhead and the actual fixed overhead incurred, due to changes in production volume.

Standard Cost

A predetermined cost of manufacturing an item, including direct materials, labor, and overheads, used for budgeting and performance evaluation.

Overhead Cost Performance Report

A document that compares the actual overhead costs incurred to the budgeted or standard overhead costs, for the purpose of monitoring and controlling these costs.