Businesses That Are Allowed to Use the Quick Method for Applying

question 2

Multiple Choice

Businesses that are allowed to use the Quick Method for applying GST/HST include -

• A) banks and other financial institutions
• B) any business with annual sales less than $500 000
• C) some small businesses
• D) all businesses may use the Quick Method

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Definitions:

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a company.

Absorption Costing

The reporting of the costs of manufactured products, normally direct materials, direct labor, and factory overhead, as product costs.

Operating Leverage

Operating leverage describes the extent to which a company can increase its profits by increasing sales, highlighting the fixed versus variable costs structure.

Operating Income

A metric that calculates the profits realized from a business's core operations, excluding deductions of interest and taxes.