In Order to Help Pay for the Costs of Extending

question 93

Multiple Choice

In order to help pay for the costs of extending health insurance to previously uninsured people, the PPACA imposes new taxes, including the following, except

• A)an increase in the Medicare payroll tax for individuals earning more than $200,000 ($250,000 for married couples)per year.
• B)an increase in the capital gains tax for individuals earning more than $200,000 ($250,000 for married couples)per year.
• C)a tax levied on indoor tanning.
• D)a tax on junk foods and soda.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much revenue is contributing to cover fixed expenses and profit.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production, such as rent, salaries of permanent staff, and property taxes on a factory.

Variable Costing

A method of accounting that incorporates only the costs that vary with production into the cost of products, leaving out any fixed manufacturing overhead.

Absorption Costing

A fiscal recording method that consolidates every cost involved in manufacturing, which includes the price of direct materials, payments for direct labor, and total overhead costs, whether stable or fluctuating, into the cost allocated to a product.