The after-tax cost of a deductible cash expense is

Question

Quizplus · Accepted Answer

The after-tax cost of a deductible cash expense is the amount that remains after taxes have been paid on the expense. This is calculated by taking the cash expense and multiplying it by 1 minus the tax rate. This is because the tax rate represents the portion of the expense that will be paid in taxes, so subtracting it from 1 gives us the portion that remains after taxes have been paid. Therefore, choice C is the correct answer.

The After-Tax Cost of a Deductible Cash Expense Is