Which of the Following Is an Excise Tax

question 5

Multiple Choice

Which of the following is an excise tax?

• A)tax levied on corporate income
• B)tax levied on personal income
• C)tax levied on the consumption of a certain good
• D)tax levied on the top 2 percent of income earners -Consider This: While this would cause income taxes to be even more progressive,it would not be an excise tax since it doesn't focus on consumption of goods.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much revenue is contributing to fixed costs and profit.

Automated Factory

A production facility that relies heavily on automated processes and machinery to manufacture goods with minimal human intervention.

Fixed Expenses

Costs that do not vary with the level of production or sales, such as rent, insurance, and salaries.

Variable Expenses

Expenses that change in proportion to the activity of a business, such as sales commissions that rise with increased sales or materials costs that rise with increased production.