In the US ,Taxes on Capital Gains Are Computed Using

question 2

Multiple Choice

In the U.S. ,taxes on capital gains are computed using

• A)nominal gains.This is one way by which higher inflation discourages saving.
• B)nominal gains.This is one way by which higher inflation encourages saving.
• C)real gains.This is one way by which higher inflation discourages saving.
• D)real gains.This is one way by which higher inflation encourages saving.

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Definitions:

Total Manufacturing Cost

The total expenses directly related to the manufacture of products, encompassing the price of raw materials, wages for direct labor, and indirect manufacturing costs.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual jobs or units based on a certain activity base, such as labor hours or machine hours, calculated before the period begins.

Machine-Hours

A measure of production or work volume calculated by the number of hours machines are operating.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated by dividing estimated overhead costs by an allocation base.