The Largest Source of Tax Revenue for the Federal Government

question 90

Multiple Choice

The largest source of tax revenue for the federal government comes from ________ taxes.

• A) corporate income
• B) excise tax
• C) social insurance
• D) individual income
• E) marginal income

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Definitions:

Variable Expenses

Costs that change in proportion to the activity of a business, such as sales or production levels.

Fixed Expenses

Costs that do not change in total despite fluctuations in the volume of goods or services produced or sold.

Annual Sales

The total revenue generated from the sale of goods or services in one fiscal year.

Variable Expenses Per Unit

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor costs per unit.