The Stamp Act Created Such a Stir in the Colonies

question 23

Multiple Choice

The Stamp Act created such a stir in the colonies because:

• A) it raised prices on printed products so much that most colonists no longer could afford to buy books and newspapers.
• B) lawyers were offended that they could be jailed for not using the correct stamp on legal documents.
• C) it was the first direct tax Parliament imposed on the colonies.
• D) none of the revenue raised would be spent within the colonies themselves.

---

Definitions:

Manufacturing Margin

The difference between the sales revenue generated by manufactured goods and the cost of producing those goods, indicating profitability.

Variable Costing

A pricing technique that incorporates solely the variable costs of production—such as raw materials, direct labor, and variable overhead expenses—into the per-unit cost of products.

Variable Overhead

Costs that change with the level of production or service activities.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.