The Average Tax Rate Is

question 68

Multiple Choice

The average tax rate is

• A)the fraction of an additional dollar of income that must be paid in taxes.
• B)the total amount of taxes paid divided by after-tax income.
• C)the total amount of taxes paid divided by before-tax income.
• D)the average amount of government spending that is financed by taxes.

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Definitions:

Automated Shaper

Machinery equipped with computer numerical control (CNC) to shape materials into specific designs with minimal human intervention.

Unused Capacity

Refers to the available production or service facility resources that are not currently being used.

Predetermined Overhead Rate

A rate used in cost accounting to allocate manufacturing overhead costs to products based on a planned level of activity or driver, such as machine hours or labor hours.

Machine-Hours

A measure of production volume or activity based on the number of hours machines are in operation.