A Progressive Tax System Implies That

question 41

Multiple Choice

A progressive tax system implies that

• A)the proportion of income paid to taxes rises as income increases and falls as income decreases.
• B)the proportion of income paid to taxes falls as income increases and rises as income decreases.
• C)the proportion of income paid to taxes rises as income increases and does not change as income decreases.
• D)the proportion of income paid to taxes decreases as income increases and does not change as income decreases.
• E)the proportion of income paid to taxes does not change as income increases and rises as income decreases.

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Definitions:

Fixed Budget Sales

A financial plan that outlines expected sales for a period based on set conditions, without adjustments for variations in actual performance.

Standard Costs

Standard costs are predetermined costs established as targets for the production of goods or rendering of services, used as benchmarks to measure performance.

Actual Costs

The real expenses incurred or paid during a project or operation, as opposed to budgeted or estimated costs.

Differences

Refers to the disparities or variations that exist between two or more items, figures, or entities, often used in financial analysis and auditing.