The Variable Cost of Part X Is $50 and the Full

question 61

Multiple Choice

The variable cost of Part X is $50 and the full cost of the part is $80. The part is produced in country Z and transferred to a plant in country B. Country A has a 30% income tax rate. Country B has a 50% income tax rate and an import duty equal to 10% of the price of the item. Part X can be transferred at full cost or variable cost. Assume that Part X is priced at full cost. The income tax effect per unit in country Z is:

• A) a decrease in tax by $24 per unit
• B) a decrease in tax by $9 per unit
• C) an increase in tax by $24 per unit
• D) an increase in tax by $9 per unit

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Definitions:

Government Guidelines

Official recommendations or policies issued by a governing authority intended to direct the conduct or operation of certain activities.

Noting A Discrepancy

Identifying and recording differences between expected and actual results or observations.

Nutrition Counseling Model

An approach in health care that focuses on assisting individuals in making and sustaining dietary changes to improve health outcomes through personalized, targeted advice.

Dietary Goals

Objectives set to achieve a specific nutritional outcome, often relating to improved health or weight management.