Which of the Following Activities Will Create Sales Tax Nexus

question 45

Multiple Choice

Which of the following activities will create sales tax nexus?

• A) Advertising using television commercials.
• B) Electronic delivery of software.
• C) Delivery of sales by UPS.
• D) Sales people physically located in a state from which they only take orders.

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Definitions:

Average Total Cost

The per unit cost of production, calculated by dividing total cost by the quantity of output produced.

Fixed Cost

Costs that do not change with the level of production or output, such as rent or salaries.

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.

Average Total Cost

The total cost of production divided by the number of units produced, indicating the average cost per unit.