A Progressive Tax

question 82

Multiple Choice

A progressive tax

• A) is one that taxes those with higher incomes at a higher rate than those with lower incomes.
• B) takes a similar percentage in the form of taxes from those with higher incomes as it does from those with lower incomes.
• C) takes a higher percentage of income in the form of taxes from those with lower incomes than from those with higher incomes.
• D) is any tax in which the dollar amount of taxes paid increases with income.

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Definitions:

Direct Labor-Hours

Direct labor-hours are the total hours worked by employees directly involved in manufacturing a product or delivering a service.

Standard

A benchmark or a set level of performance or achievement that is established for a process or product.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated, based on the efficiency of operations.

Supplies Cost

Supplies cost refers to the expense incurred in purchasing office or production supplies that are necessary for day-to-day operations.