Use the Following to Answer Question

question 24

Multiple Choice

Use the following to answer question:
-(Table: Taxes,Spending,and Income) Use Table: Taxes,Spending,and Income.Suppose Governor Meridias decides to initiate a state tax of 5% on all sales.This tax will be:

• A)progressive.
• B)proportional.
• C)regressive.
• D)structural.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for a more accurate comparison of actual to budgeted performance.

Servicing Materials

Materials and supplies used in the maintenance and repair of machinery or equipment during the production process or in providing services.

Flexible Budget

A budget designed to adapt to variations in activity or volume levels.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or sales activity within a certain period.