Which of the Following Is an Example of Value-Added Taxation

question 41

Multiple Choice

Which of the following is an example of value-added taxation?

• A)An employee notices that 8% of his latest paycheck has been taxed by the state government.
• B)A homeowner mails a check to the local government equal to 1% of her home's appraised value.
• C)The accountant for a coal mining company determines that 20% of the value of the coal mined in a certain area will be taxed.
• D)A gravel-crushing company is taxed when it sells gravel to a cement company; the cement company is taxed when it sells the concrete to a contractor; and the contractor is taxed when he sells a finished concrete driveway to a homeowner.
• E)None of the above

Calculate predetermined overhead rates for production departments based on different bases (machine-hours, direct labor-hours).

Apply overhead costs to jobs using predetermined overhead rates.

Calculate the total cost of a job inclusive of direct materials, direct labor, and applied overhead.

Determine the selling price of a job using manufacturing costs and predetermined markup percentages.

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Definitions:

Selective Memory

The tendency to remember only certain details of an event or experience, often those that align with one's existing beliefs or attitudes.

Rehearsing

The act of practicing ahead of time how one will perform in a specific situation to perfect their response or performance.

Boredom

A state of feeling disinterested or weary due to lack of stimulation or activity.

Egalitarian Message

A communication that promotes equality and equal rights among all people.