If a Good Has a Tax Levied on It,sellers Respond

question 167

Multiple Choice

If a good has a tax levied on it,sellers respond to the price that excludes the tax and not the price with the tax because

• A) the tax is handed over to the state directly by buyers.
• B) sellers do not get to keep the tax revenue.
• C) the demand for the good has decreased.
• D) the quantity supplied of the good increases.
• E) demanders pay none of the tax.

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Definitions:

Job Cost Sheets

Documents that record and summarize the costs associated with a specific job or project, helping in tracking direct materials, direct labor, and overhead.

Job Order Cost System

An accounting method that accumulates costs for each individual job or project, tracking materials, labor, and overhead.

Uniform Products

Products that are identical in quality and performance, manufactured to meet a standard specification.

Cost Accounting

An area of accounting that involves measuring, recording, and reporting product costs.