Which of the Following Statements Is False

question 134

Multiple Choice

Which of the following statements is false?

• A) VATs are attractive because people who evade income taxes will not escape the VAT.
• B) A VAT is a regressive tax
• C) Some countries rely entirely on a VAT for government revenue.
• D) Many countries adopted VATs in the 1990s.
• E) A VAT is an indirect tax imposed at each state of production.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the expected (or budgeted) cost of labor based on standard rates and hours.

Labor Standards

Benchmarks or norms for the amount of labor time required to perform a certain task or produce a certain amount of goods.

Particular Product

A specific item or good that is produced and offered for sale by a business.

Labor Efficiency Variance

A measure used in budgeting and cost management to analyze the difference between the actual hours worked and the hours that should have been worked, according to standards, for the actual level of production.