Which of the Following Is a Tax Based on the Benefits-Received

question 20

Multiple Choice

Which of the following is a tax based on the benefits-received principle?

• A) A property tax, if the revenue is used to finance public education.
• B) A tax on imports that is used to finance job retraining for workers who have lost their jobs because of the competition from imported products.
• C) A progressive income tax that is used to finance national defense.
• D) A tax added to the camping fee at national parks that is used to maintain and upgrade camping facilities at national parks.

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Definitions:

Variable Manufacturing Overhead

Costs that vary with the level of production output, such as supplies and indirect labor expenses, not directly tied to the production volume.

Predetermined Overhead Rate

A calculated rate used to allocate overhead costs to products or cost objects based on a planned level of activity.

Direct Labor-Hours

The aggregate number of hours that workers, who are directly part of producing goods or services, contribute.

Job-Order Costing

A cost accounting system that assigns costs to specific production batches or jobs, enabling the calculation of the cost per job.