A Tax Levied on Purchases of a Particular Good or Service

question 84

Multiple Choice

A tax levied on purchases of a particular good or service

• A) is illegal because it is discriminatory.
• B) always leads to a reduction in total tax revenues.
• C) always leads to an increase in total tax revenues.
• D) is an excise tax.

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Definitions:

Labour Efficiency Variance

The deviation in actual labor usage compared to what was expected or budgeted, impacting the cost-efficiency and profitability of production.

Critical Values

Specific points on the scale of a test statistic that determine the threshold for rejecting the null hypothesis.

Material Price Variance

The difference between the actual cost of materials used in production and the expected cost based on standard pricing.

Material Inventory

Stocks of raw materials, work-in-progress, and finished goods that a company holds at any given time to ensure smooth production and sales.