Which of the Following Statements Regarding a Convenient Tax Is

question 23

Multiple Choice

Which of the following statements regarding a convenient tax is false?

• A) From the government's viewpoint, a good tax should be convenient to administer.
• B) From the taxpayer's viewpoint, a good tax should be convenient to pay.
• C) A convenient tax should have a method of collection that offers maximum opportunity for noncompliance.
• D) A convenient tax should permit taxpayers to compute their tax with reasonable certainty without incurring undue costs.

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Definitions:

Responsibility Center

A unit or department within an organization for which its managers have authority and responsibility for performance and outcomes.

Indirect Fixed Cost

Expenses that cannot be directly linked to the production of goods or services and do not vary with the level of production output.

Profit Center

A segment or unit within an organization that is responsible for generating its own revenue and tracking its own costs.

Company Personnel Department

The segment of a business organization that handles hiring, training, employee relations, and benefits administration.