John Has Just Received a Rather Large Increase in Salary

question 7

Multiple Choice

John has just received a rather large increase in salary, but he is upset because he feels that he should not be charged a higher rate of tax on this extra money. John is being taxed by a ________ tax system.

• A) provincial
• B) federal
• C) progressive
• D) restrictive
• E) regressive

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Definitions:

Unit Costs

Unit costs represent the total expenditure incurred by a company to produce, store, and sell one unit of a particular product or service.

Average Costing

A method of inventory valuation where all goods are assigned the average cost of all similar goods available during the period.

FIFO

An inventory valuation method standing for “First-In, First-Out,” where the cost of the oldest inventory items are the first to be expensed.

Cost Of Production Report

A document that summarizes the production and cost activity within a manufacturing department over a specific period.