Which of the Following Statements Concerning Sales Taxes Is False

question 67

Multiple Choice

Which of the following statements concerning sales taxes is false?

• A) Sales taxes apply to the purchase of most types of consumer goods.
• B) Sales taxes apply to the purchase of most types of consumer services.
• C) Sales taxes are collected by the seller when the sale is made.
• D) Sales taxes imposed on the purchaser of retail items are consumption taxes.

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Definitions:

Manufacturing Margin

The difference between the sales revenue generated from manufactured goods and the cost of goods sold, reflecting the profitability of the manufacturing operations.

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in product costs.

Variable Cost

Variable costs are expenses that vary directly with the level of production or sales volume.

Absorption Costing

An accounting method that includes all of the manufacturing costs in the cost of a product, including direct labor, materials, and overhead.