A Property Tax I.is Levied on the Value of Property

question 113

Multiple Choice

A property tax
I.is levied on the value of property.
II.is referred to as ad valorem.
III.on personal property is more common than a tax on real property.
IV.is based upon assessed value rather than actual transactions.
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• A)Only statement I is correct.
• B)Statements II and III are correct.
• C)Statements I, II, and IV are correct.
• D)Statements I, II, III, and IV are correct.

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Definitions:

Per Unit Basis

A method of cost allocation or measurement that divides a total by the number of units to find the cost per unit.

Fixed Production Costs

Manufacturing costs that remain constant regardless of the level of production, such as rent and salaries of permanent staff.

Per Unit

A term that describes costs or revenues on a single unit basis.

Variable Costs

Expenses that directly fluctuate in proportion to the production or service activity level.