During the Last 15 Years, What Has Happened to the Marginal

question 704

Multiple Choice

During the last 15 years, what has happened to the marginal tax rates imposed on high-income taxpayers and the personal income tax revenues collected from them?

• A) Both the rates imposed and the revenues collected from the rich have increased.
• B) Both the rates imposed and the revenues collected from the rich have declined.
• C) The tax rates imposed on the rich have declined, but the revenues collected from them have increased.
• D) The tax rates imposed on the rich have increased, but the revenues collected from them have declined.

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Definitions:

Activity Cost Pools

Groups of individual costs driven by the same cost drivers, used in activity-based costing to allocate costs more accurately.

Cost Per Unit

The total cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Predetermined Overhead Rate

A rate used to charge manufacturing overhead cost to jobs that is established in advance for each period. It is computed by dividing the estimated total manufacturing overhead cost for the period by the estimated total amount of the allocation base for the period.

Costing System

A method for assessing and allocating costs of production, typically involving direct costs, indirect costs, and overheads.