If Net Sales Revenue for a Retail Chain Has Been

question 15

Multiple Choice

If net sales revenue for a retail chain has been relatively constant for the last four years,but the fixed asset turnover has been decreasing,what would be the most likely cause?

• A)The number of stores has expanded.
• B)Cost of Goods sold has been increasing.
• C)Employee wages have been increasing.
• D)The company has closed some of its stores.

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the percentage of additional income that is paid in tax.

Efficiency

The optimal use of resources to achieve the best possible outcome or output with minimal waste.

Equity

Equity refers to fairness or justice in the way people are treated and involves ensuring equal opportunities and rights for all individuals.

Benefits Principle

A theory in taxation where taxes are apportioned according to the benefits received by taxpayers; those who benefit more from government services, pay more taxes.