It Only Makes Sense to Implement an ABC System When

question 98

Multiple Choice

It only makes sense to implement an ABC system when ________.

• A) a single product is produced in bulk
• B) its benefits exceed its implementation costs
• C) it traces more costs as direct costs
• D) production process is labor-intensive

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Definitions:

Average Tax Rate

The percentage of total income that is paid as tax, calculated by dividing the total tax amount by the total income.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed; refers to the percentage of tax applied to the last dollar earned.

Tax Base

The total amount of assets or income that can be taxed by a government, providing a source of revenue.