Salaries are considered an ordinary and necessary expense of a trade or business if they meet what other requirement? What are the tax consequences if this requirement is not met?
"Reasonableness" is an additional requirement that applies to salaries. Generally, the unreasonable expense is disallowed as a deduction to the corporation and taxable as a dividend, rather than as salary, to the shareholder.
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Variable costing is a method of reporting that deals only with a manager's controllable, variable costs
Indicate whether the statement is true or false
Did the policies and procedures set forth in the Employee Handbook provide legally enforceable rights for the covered employees working under the handbook rules?
Timberlake Company planned for a production and sales volume of 12,000 units. However, the company actually makes and sells 13,000 units. Per unit standards Static Budget Flexible BudgetNumber of units 12,000 13,000 Sales revenue$65.00 $780,000 $845,000 Variable manufacturing costs: Materials$11.00 132,000 143,000 Labor$9.00 108,000 117,000 Overhead$4.20 50,400 54,600 Variable general, selling, and administrative costs$11.00 132,000 143,000 Contribution margin $357,600 $387,400 Fixed costs Manufacturing overhead 100,800 100,800 General, selling, and administrative costs 45,000 45,000 Net
income $211,800 $241,600 What was the sales volume variance? A. $29,800 favorable B. $29,800 unfavorable C. $65,000 unfavorable D. $65,000 favorable
Two technological contingencies that influence the best type of organizational structure are:
A. dynamism and hostility. B. organic and mechanistic. C. variability and analyzability. D. formalization and division of labor. E. coordination and formalization.