In 2009,the Average American Paid Approximately How Much to the Federal

question 376

Multiple Choice

In 2009,the average American paid approximately how much to the federal government in taxes?

• A) $1,900
• B) $4,500
• C) $6,800
• D) $8,500

---

Definitions:

Fixed Costs

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

Absorption Costing

An approach in accounting that comprises all costs of manufacturing, like direct materials, direct labor, and both types of manufacturing overheads (variable and fixed), in determining a product's cost.

Overproduction

The creation of more products or goods than are needed, leading to excess inventory and potential waste.

Variable Costing

An accounting approach that solely accounts for variable production expenses like direct materials, direct labor, and variable manufacturing overhead in the calculation of product costs.