A Sales or Excise Tax

question 25

Multiple Choice

A sales or excise tax

• A) shifts the supply curve upward by the amount of the tax.
• B) is rarely paid by the consumer if demand is insensitive to price.
• C) is another name for a supply-side tax.
• D) increases the quantity sold in the market.
• E) has a very high collection cost relative to its yield.

Recognize the contributions of different disciplines to the field of organizational behavior.

Appreciate the importance of diversity and its impact on organizational performance.

Understand the various types of visuals and where they are best utilized.

Recognize the importance of clearly labeling units and the potential for misleading visuals.

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Definitions:

Predetermined Overhead Rate

A rate calculated before the year begins, used to allocate estimated overhead costs to products based on a chosen activity base.

Machine-Hours

The total number of hours that a machine is in operation, used as a basis for allocating manufacturing overhead costs related to machinery.

Job-Order Costing

A cost accounting system that accumulates costs for each distinct job or batch, used in situations where products or services are distinctly customizable.

Selling Price

The amount of money charged for a product or service, or the sum for which something is sold on the market.