A Regressive Tax Structure Is One in Which Taxes

question 210

Multiple Choice

A regressive tax structure is one in which taxes:

• A)rise less than in proportion to income.
• B)rise more than in proportion to income.
• C)rise exactly in proportion to income.
• D)stay the same regardless of income changes.

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Definitions:

Dual Rate System

A method of cost allocation where costs are divided into fixed and variable categories, with each being allocated differently.

Variable Overhead Rate

A measure used to estimate the variable costs that a business incurs during the production of a good or service.

Direct Labor Hours

The amount of time spent by workers directly involved in manufacturing a product.

Direct Materials

Raw materials that can be directly linked to the production of specific goods or services in a manufacturing process.