A Proportional Tax Is Defined as a Tax for Which

question 247

Multiple Choice

A proportional tax is defined as a tax for which the

• A) average tax rate rises as income increases.
• B) average tax rate falls as income increases.
• C) average tax rate remains constant at all levels of income.
• D) dollar tax liability of those with higher income is the same as the dollar tax liability of those with lower income.

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Definitions:

Rate Variance

The difference between the actual rate paid for goods or services and the expected (or standard) rate, most often related to labor or materials.

Direct Labor-Hours

Sum of working hours of staff directly participating in the production process of an item.

Labor Rate Variance

This is the difference between the actual cost of labor and the budgeted or standard cost of labor used in manufacturing.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used for allocating labor costs to products.