Taxes That Are Graduated So That the Rate Goes Up

question 18

Multiple Choice

Taxes that are graduated so that the rate goes up with the size of income are called

• A)progressive income taxes.
• B)regressive income taxes.
• C)flat rate taxes.
• D)socialist taxation.
• E)graduated taxation.

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating labor costs to products.

Raw Materials

Basic materials that are used in the manufacturing process to produce goods and products.

Predetermined Overhead Rate

A rate used to charge manufacturing overhead cost to jobs that is established in advance for each period. It is computed by dividing the estimated total manufacturing overhead cost for the period by the estimated total amount of the allocation base for the period.