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A $5 Per Unit Sales Tax Is Bad for Consumers

question 48

True/False

A $5 per unit sales tax is bad for consumers because it implies that the total amount (price plus tax)that they must pay increases by $5.

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Definitions:

Indirect Labor

Labor costs that are not directly tied to the production of goods or the performance of services, such as the salary of a factory supervisor.

Overhead Applied

The allocation of estimated overhead costs to individual units of production based on a predetermined rate.

Direct Labor Costs

The total cost incurred by a company for the wages of employees who are directly involved in the operational production process.

Materials Requisition

A materials requisition is a document or electronic request used within a company to authorize the transfer of materials from inventory for production or other use.

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