The Logistical Costs Associated with Implementing a Tax Are Called

question 62

Multiple Choice

The logistical costs associated with implementing a tax are called the:

• A) deadweight loss.
• B) administrative burden.
• C) total surplus.
• D) tax revenue.

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Definitions:

Prepaid Expense

Payments made in advance for goods or services that will be received in the future.

Direct Method

A method for preparing a cash flow statement where cash receipts and payments are reported directly, without using adjustments for non-cash items.

Selling Expense

Costs incurred to sell a product, including advertising, sales commissions, and other expenses directly related to the sales process.

Administrative Expense

Costs associated with the general administration of a business, such as salaries of executive officers, legal fees, and office supplies.