A State Tax Assessed Specifically on Cigarettes Is an Example

question 197

Multiple Choice

A state tax assessed specifically on cigarettes is an example of

• A) an excise tax.
• B) a consumption tax.
• C) a social tax.
• D) a tariff.

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Definitions:

Financial Reporting

The act of creating declarations that expose the financial position of a corporation to its managers, shareholders, and regulatory agencies.

Units Sold

The total number of product units that have been sold in a specific period.

Selling Price

The price levied for a good or service.

Contribution Margin

This metric represents the difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit, essentially restating the importance of covering variable expenses to achieve profitability.