Proponents of Tax-Law Changes to Encourage Saving Would

question 54

Multiple Choice

Proponents of tax-law changes to encourage saving would

• A) argue that corporate tax rates should be increased.
• B) eliminate or reduce the means-tests for government benefits.
• C) argue that state sales tax should be replaced with state income tax.
• D) favor none of the above programs.

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Definitions:

Fixed Overhead Cost

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance, related to the operation of manufacturing facilities.

Direct Labour Hours

The total number of hours worked by employees directly involved in the production of goods or services.

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected to produce a certain level of output.

Standard Labour Rate

The predetermined or expected cost per unit of labor, used in budgeting and cost control.