A Drawback to Implementing Environmental Taxes and Fees Is That

question 46

Multiple Choice

A drawback to implementing environmental taxes and fees is that it ____.

• A) penalizes low-income groups unless safety nets are provided
• B) helps bring about full-cost pricing
• C) encourages businesses to develop environmentally beneficial goods
• D) is easily administered by existing tax agencies
• E) introduces environmentally beneficial technologies

---

Definitions:

Standard Rate

A predetermined cost or price used as a benchmark for evaluating the efficiency or effectiveness of operations.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a specific period, indicating under or overspending.

Variable Overhead

Costs that change with the level of production or service activity.

Activity Level

A metric indicating the volume or intensity of operations in a company, affecting its costs and resources.