-In the Above Figure, a Sales Tax of $1 Per

question 129

Multiple Choice

-In the above figure, a sales tax of $1 per unit imposed on sellers ________ the price buyers pay and ________ the price that suppliers keep for themselves.

• A) affects; does not affect
• B) does not affect; affects
• C) does not affect; does not affect
• D) affects; affects

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Definitions:

Period Cost

Costs that are expensed in the period they are incurred and are not directly tied to production activity.

Indirect Costs

Costs that cannot be directly linked to the production or sale of a specific product or service, such as administration, rent, and utilities.

Manufacturing Overhead

All indirect costs associated with manufacturing beyond direct materials and direct labor, such as utilities and maintenance.

Variable Costs

Costs that vary directly with the level of production or sales volume.